Nigeria’s Federal Government is paying more on debt interest than it collects in revenue, with new World Bank figures showing interest costs far outpacing income during the first half of 2026. Several outlets report that interest payments reached ₦7.7 trillion against total revenue of ₦6.2 trillion, an interest-to-revenue ratio of 124.2%. The World Bank frames the situation as deepening fiscal pressure driven largely by high domestic borrowing costs.
Outlets also cite the broader context of rising debt. One report says Nigeria’s public debt reached US$120.93 billion in June 2026, while another references the World Bank’s estimate of the debt stock growing substantially in recent years. While revenue increases are noted—supported by stronger oil receipts, corporate taxes and independent revenues—overall spending also rises. The World Bank cautions that improvements can be driven by reduced capital spending rather than durable fiscal reforms, and highlights ongoing issues such as weak expenditure planning and misalignment between budgets and execution. It recommends limiting costly borrowing, using more concessional financing, and extending maturities to reduce refinancing risk.
