The Federal Government through the Ministry of Finance has actually declined claims that it invested 124 percent of its earnings on financial obligation interest payments in the very first half of 2026.
It explained the analysis of the figures as deceptive.
The ministry stated the computation stopped working to represent distinctions in the scope of federal government financial obligation responsibilities and the earnings utilized for contrast. It likewise argued that a six-month evaluation does not supply a total image of Nigeria’s financial obligation sustainability.
In a declaration released on Sunday, October 18, the ministry stated the analysis, credited to the World Bank’s October 2026 Nigeria Development Update, consisted of financial obligation serviced by the Federal Government on behalf of other tiers of federal government, consisting of external loans gotten by state federal governments.
According to the ministry, comparing such responsibilities with federal earnings alone overemphasizes the financial obligation interest-to-revenue ratio due to the fact that the figures do not cover the very same level of federal government.
It likewise argued that the income figure utilized in the computation was insufficient since it left out independent income made by federal government companies and business however not yet remitted to the Treasury.
The ministry included that federal government income normally increases in the 2nd half of the year since of the statutory timing of specific tax payments.
In its argument, the ministry mentioned the 156 percent interest-to-revenue ratio taped in the very first half of 2025, keeping in mind that the full-year debt-service-to-revenue ratio consequently fell listed below 60 percent.
It stated the full-year figure represented a considerable enhancement from the 97 percent ratio taped before the present administration’s financial reforms.
“This is why the ratio stood at 156% in H1 2025, while the full-year 2025 debt-service-to-revenue ratio was listed below 60%, below 97% before the reforms. This is a clear indication of the development provided by the present administration’s reforms,” the declaration checked out.
The ministry likewise highlighted enhancements in profits collection in between the very first half of 2025 and the matching duration in 2026.
It stated federal profits increased by 72 percent, from N3.6 trillion to N6.2 trillion, while interest payments increased by 38 percent, from N5.6 trillion to N7.7 trillion.
According to the ministry, the faster development in earnings lowered the interest-to-revenue ratio by 32 portion points, from 156 percent to 124 percent, within one year.
It included that the distinction in between interest payments and earnings narrowed from N2 trillion in the very first half of 2025 to N1.5 trillion in the matching duration of 2026.
The ministry preserved that these figures showed development under the federal government’s financial reforms instead of proof of aggravating financial conditions.
It even more argued that financial obligation sustainability need to be evaluated utilizing full-year figures instead of a six-month photo.
Mentioning the World Bank’s forecasts, the ministry stated Nigeria’s financial obligation service, covering both interest and primary payments, was anticipated to represent 46 percent of profits in 2026.
The ministry explained the forecasted full-year ratio as a better suited standard for evaluating the nation’s financial obligation position.
It likewise firmly insisted that all federal government loaning was legal and had actually been authorized by the National Assembly under the 2026 Appropriation Act and the authorized loaning strategy.
According to the ministry, the federal government performs its loaning in accordance with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003, with loaning activities routinely released by the Debt Management Office.
“The Ministry invites notified examination of public financial resources. We motivate experts and analysts to use the exact same rigour they look for to hold the federal government to: compare like with like, check out figures in context, and look for information where the information is uncertain,” the declaration included.
Damilare Adeleye
Damilare is a Nigerian reporter covering politics, education and nationwide security. He holds a bachelor’s degree in English from Lagos State University. He has 3 years of experience in news writing, reporting, and editorial analysis. His work concentrates on public affairs, governance, public law, education, and socio-economic problems forming Nigeria. He can be reached on
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