The Federal Government has disagreed with the World Bank’s assessment that its debt servicing obligations stood at 124 percent of revenue in the first half of 2026, arguing that the figure does not accurately reflect the Federal Government’s finances.
The Federal Ministry of Finance explained that the calculation included debt payments made on behalf of state governments, including external loans, while comparing them only with federal revenue. It also said the figures excluded some revenues earned by government agencies but not yet remitted to the Treasury.
The ministry stated that federal revenue rose by 72 percent, from 3.6 trillion naira in the first half of 2025 to 6.2 trillion naira in the corresponding period of 2026, while interest payments increased by 38 percent. It maintained that debt sustainability should be assessed using full-year figures, citing the World Bank’s projection that debt servicing would account for 46 percent of revenue in 2026.
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