The Federal Government has faulted the World Bank’s assessment of Nigeria’s debt burden, insisting that the N7.7tn spent on interest payments in the first half of 2026 does not indicate a threat to the country’s debt sustainability.
The Ministry of Finance stated its position in a statement issued on Sunday and shared on X by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
The World Bank had raised concerns in its October 2026 Nigeria Development Update over the country’s debt servicing-to-revenue ratio, which stood at 124 per cent during the first six months of the year.
However, the ministry described the figure as misleading, arguing that it was based on incomplete revenue data and included debt obligations the Federal Government services on behalf of state governments.
According to the ministry, comparing such obligations with federal revenue alone exaggerates the actual burden because the debt and revenue figures do not cover the same levels of government.
It also argued that the calculation excluded revenue generated by government agencies and enterprises that had yet to be transferred to the Treasury.
The ministry further explained that certain taxes are collected predominantly in the second half of the year, making first-half figures insufficient for assessing the government’s annual debt obligations.
It said the debt servicing-to-revenue ratio stood at 156 per cent in the first half of 2025 but fell below 60 per cent for the full year, following the implementation of the administration’s economic reforms.
Providing a comparison of the first halves of 2025 and 2026, the ministry said federal revenue increased by 72 per cent, rising from N3.6tn to N6.2tn, while interest payments grew by 38 per cent, from N5.6tn to N7.7tn.
It maintained that revenue was expanding at a significantly faster pace than interest costs, resulting in a 32-percentage-point reduction in the interest-to-revenue ratio within one year.
The ministry added that the difference between interest payments and revenue narrowed from N2tn in the first half of 2025 to N1.5tn during the corresponding period in 2026.
It described the figures as evidence that the government’s reforms were yielding results rather than signalling fiscal distress.
The statement further noted that debt sustainability should be assessed using full-year figures rather than data covering only six months.
According to the ministry, the World Bank’s report projected Nigeria’s total debt service, including both interest and principal repayments, at 46 per cent of revenue for the full year 2026.
It described the projection as a more appropriate benchmark for evaluating the country’s debt position.
The ministry also maintained that all federal borrowing remained within the limits approved by the National Assembly under the 2026 Appropriation Act and the government’s borrowing plan.
It said the borrowing process complied with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003, adding that borrowing details were regularly published by the Debt Management Office.
While welcoming scrutiny of public finances, the ministry urged analysts and commentators to assess government revenue and debt obligations within the appropriate context.
It called for comparisons involving consistent data and encouraged stakeholders to seek clarification where financial figures were unclear.
