The Federal Government has faulted the World Bank’s assessment of Nigeria’s revenue and debt obligations, dismissing concerns that rising interest payments pose a threat to the country’s debt sustainability.

The Federal Ministry of Finance described reports that interest payments consumed 124 per cent of federal revenue in the first half of 2026 as misleading, arguing that the figures did not provide a complete picture of the government’s fiscal position.

The ministry stated its position in a statement on Sunday, shared by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on his X handle.

The clarification followed reports based on the World Bank’s October 2026 Nigeria Development Update, which put federal revenue at N6.2 trillion and interest payments at N7.7 trillion for the first half of the year.

An analysis of the figures showed that interest payments exceeded revenue by N1.5 trillion, representing approximately 124.2 per cent of the government’s earnings during the period.

However, the ministry argued that the calculation was misleading for three reasons, including the treatment of debt obligations serviced on behalf of state governments.

According to the ministry, the interest payment figure included external loans serviced by the Federal Government for other tiers of government, making a comparison with federal revenue alone inappropriate.

The ministry also argued that the reported revenue figures excluded income earned by government agencies and enterprises but not yet remitted to the Treasury.

The ministry further cited improvements in the country’s fiscal performance, noting that the interest-to-revenue ratio stood at 156 per cent in the first half of 2025, compared with 124 per cent in the corresponding period of 2026.

It said federal revenue increased by 72 per cent, from N3.6 trillion in the first half of 2025 to N6.2 trillion in the same period of 2026.In contrast, interest payments rose by 38 per cent, from N5.6 trillion to N7.7 trillion over the same period.

According to the ministry, the difference between interest payments and revenue consequently narrowed from N2 trillion to N1.5 trillion, while the interest-to-revenue ratio declined by approximately 32 percentage points.

It described the development as evidence that the government’s fiscal reforms were yielding results rather than indicating financial distress.

On borrowing, the Federal Government maintained that its loans were lawful and obtained within the limits approved by the National Assembly under the 2026 Appropriation Act and the government’s borrowing plan.

However, despite challenging the World Bank’s assessment, the ministry did not provide revised revenue or interest payment figures or an alternative ratio to substantiate its position.