FG To World Bank: Nigeria’s 124% Debt-interest Burden Overstated
The federal government has disputed the World Bank’s finding that its interest payments reached 124 per cent of revenue in the first half of 2026, saying the calculation compares debt obligations and revenue that do not…
Nigeria's debt-service-to-revenue ratio has been a persistent concern for economists and multilateral lenders, who argue that when interest payments consume a large share of government revenue, there is less fiscal space for capital spending on infrastructure, health, and education. The World Bank and IMF have repeatedly flagged Nigeria's low revenue-to-GDP ratio — among the weakest globally — as the root cause of its debt sustainability challenges, even though the country's overall debt-to-GDP ratio remains moderate compared to peers.
The dispute reported here centers on methodology: the Federal Government contends that the World Bank's 124% figure for the first half of 2026 mismatches debt obligations against a narrower revenue base, overstating the true burden. Such disagreements over how to measure fiscal distress are not new in Nigeria's engagements with multilateral institutions, and they matter because the figures often shape perceptions among investors and rating agencies about the country's borrowing capacity and economic health. What remains unclear from the coverage is the exact alternative calculation or revenue figures the government is proposing, and whether the World Bank has responded to the rebuttal.