By George Omagbemi
Nigeria’s Federal Government spent more on servicing interest on its public debt than it generated in revenue during the first half of 2026, highlighting the pressure debt obligations continue to place on the country’s public finances.
Figures from the World Bank’s October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, show that the Federal Government recorded revenue of approximately ₦6.2 trillion between January and June 2026, while interest payments amounted to ₦7.7 trillion.
The figures, reported by TheCable, put interest payments at approximately 124.2 per cent of federal revenue.
In practical terms, the government spent about ₦1.24 on interest for every ₦1 it collected in revenue during the six-month period. Interest payments exceeded revenue by approximately ₦1.5 trillion.
The report also indicated that interest payments increased from ₦5.6 trillion in the corresponding period of 2025, underlining the continuing burden of debt servicing on government finances.
The figures raise concerns about the resources available to fund infrastructure, healthcare, education, security and other public services. When interest obligations absorb more than the government collects in revenue, financing other priorities becomes more challenging and may increase pressure to borrow or adjust spending.
The World Bank’s report examines Nigeria’s fiscal position and the implications of changing revenue patterns for government spending priorities, including those of state governments.
However, the interest-to-revenue ratio should not be confused with the country’s total debt stock or total debt repayments. It measures interest expenses against federal revenue over a specific period.
The figures reinforce the importance of stronger revenue mobilisation, effective public spending and transparent debt management as Nigeria seeks to balance its financing obligations with the need to deliver essential services.
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