Finance Ministry Disputes 124% Interest-to-Revenue Ratio for H1 2026

Financing Ministry Disputes 124 % Interest-to-Revenue Ratio for H1 2026

The Federal Ministry of Finance has actually challenged claims that Federal Government interest payments reached 124 percent of income in the very first half of 2026, explaining the figure as misinforming due to distinctions in the scope of financial obligation commitments and earnings computations.

In a news release provided in Abuja on Sunday, October 18, 2026, the ministry stated the computation mentioned in current public commentary, based upon the World Bank’s October 2026 Nigeria Development Update, compared interest payments that consisted of responsibilities serviced on behalf of other tiers of federal government with federal earnings alone.

It likewise argued that the income figure left out independent profits made by federal government firms and business however not yet remitted to the Treasury.

According to the ministry, the timing of statutory tax payments likewise indicates that federal government earnings is normally greater in the 2nd half of the year, making half-year figures an insufficient procedure of the nation’s financial position.

The ministry mentioned the 2025 figures as an example, specifying that the interest-to-revenue ratio stood at 156 percent in the very first half of that year, while the full-year debt-service-to-revenue ratio fell below 60 percent, compared to 97 percent before the reforms.

Supplying a year-on-year contrast, the ministry stated federal profits increased by 72 percent, from 3.6 trillion in the very first half of 2025 to 6.2 trillion in the matching duration of 2026.

Interest payments, nevertheless, increased by 38 percent, from 5.6 trillion to 7.7 trillion over the exact same duration.

It stated the distinction in between interest payments and earnings subsequently narrowed from 2 trillion to 1.5 trillion, while the interest-to-revenue ratio decreased by 32 portion points, from 156 percent to 124 percent.

The ministry associated the modifications to continuous financial reforms, arguing that the figures suggested earnings was growing much faster than interest expenses.

It even more preserved that financial obligation sustainability ought to be evaluated utilizing full-year figures instead of a six-month photo.

Pointing Out the World Bank’s report, the ministry stated Nigeria’s predicted full-year financial obligation service, covering both interest and primary payments, stood at 46 percent of profits for 2026.

On federal government loaning, the ministry stated all Federal Government loaning was within the limitations authorized by the National Assembly under the 2026 Appropriation Act and the authorized loaning strategy.

It included that loaning activities adhered to the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003, keeping in mind that obtaining details was frequently released by the Debt Management Office.

The ministry stated it invited analysis of public financial resources however advised experts and analysts to compare figures covering the very same level of federal government, think about the context of profits collection and look for explanation where information stayed uncertain.