Nigeria’s Interest Payments Surpass Federal Revenue in First Half of 2026

Nigeria’s interest payments reached N7.7 trillion in the first half of 2026, exceeding federal government revenue of N6.2 trillion during the same period. This figure represents 124.19 per cent of federal revenue, up from N5.6 trillion in the first half of 2025.

Interest payments rose from 2.5 per cent of GDP to 3.1 per cent despite higher federal revenue, which grew to 2.5 percent of GDP (N6.2 trillion) from 1.6 percent of GDP (N3.6 trillion) the previous year. The World Bank attributed the rise to high domestic borrowing costs, noting a shift in government spending toward interest payments and reduced capital expenditure.