ABUJA — The Federal Ministry of Finance has rejected public commentary and external analyses asserting that the Federal Government’s loan interest payments reached 124% of revenue in the first half of 2026, clarifying through an official statement issued in Abuja on Sunday, October 18, 2026, that the true full-year debt-service-to-revenue benchmark stands at 46% while the actual half-year service ratio is contained at 60% rather than the circulating 124% figures.
Addressing the claims originally sparked by the World Bank’s October 2026 Nigeria Development Update, the ministry—led by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele—detailed that external calculations relied on mismatched metrics and an incomplete revenue base. According to the federal financial authorities, the reported interest figures inappropriately lump together debt obligations serviced by the Federal Government on behalf of other tiers of government, including external state-level loans, while comparing them exclusively against federal revenue streams.
The ministry emphasized that revenue collection figures omitted unremitted independent earnings from government agencies and enterprises, alongside seasonal tax payment inflows typically realized during the second half of the year. Highlighting comparative performance data, the government noted that while the half-year interest-to-revenue ratio stood at 156% in H1 2025, it dropped by 32 percentage points to 124% in H1 2026 as federal revenues surged by 72%—climbing from ₦3.6 trillion to ₦6.2 trillion—outpacing a 38% rise in interest payments from ₦5.6 trillion to ₦7.7 trillion.
Furthermore, the Federal Ministry of Finance stressed that half-year snapshots fail to provide an accurate measure of overall debt sustainability, noting that the World Bank’s evaluation projects Nigeria’s full-year 2026 debt service ratio—covering both principal and interest—at 46% of revenue, down significantly from 97% prior to ongoing economic reforms.
Reiterating adherence to statutory financial guidelines, the ministry maintained that all national borrowing activities remain completely lawful, falling strictly within limits approved by the National Assembly under the 2026 Appropriation Act and executed in compliance with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003.
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