Nigeria’s federal debt interest bill remained higher than the government’s revenue in the first half of 2026, underlining the pressure debt servicing continues to place on public finances even as revenue collections improve.
Figures from the World Bank’s October 2026 Nigeria Development Update, reported by The PUNCH, put federal interest payments at ₦7.7 trillion between January and June, compared with revenue of ₦6.2 trillion. Interest therefore amounted to 124.2 per cent of revenue, leaving a gap of about ₦1.5 trillion.
The figures also point to a mixed fiscal picture. Federal revenue rose from ₦3.6 trillion in the first half of 2025 to ₦6.2 trillion in the same period of 2026, supported by stronger oil receipts, corporate taxes and independent revenue. Yet interest costs increased from ₦5.6 trillion to ₦7.7 trillion as domestic borrowing remained expensive.
The World Bank data, as reported, also showed total federal spending rising to ₦16.1 trillion, while reported capital expenditure fell to 0.3 per cent of GDP. The institution cautioned that a narrower fiscal deficit should be read carefully when low capital spending is part of the explanation.
Why it matters
For businesses and households, the issue is not only the size of public debt. It is how much room remains in the budget for transport, power, health, education and other investments that support productivity. Higher revenue helps, but durable relief also depends on borrowing costs, budget execution and the quality of public spending.
Source: The PUNCH, citing the World Bank’s October 2026 Nigeria Development Update.