Nigeria’s Fiscal Dilemma: High Debt, Low Revenue

Nigeria's fiscal situation is marked by a significant debt service burden, with the Federal Government spending N7.7 trillion on interest payments in the first half of 2026. This amount exceeds the total revenue collected during the same period, which stood at N6.2 trillion.

The discrepancy between rising interest payments and limited public revenue has left many Nigerians puzzled. The government allocated more to creditors than it collected in revenue, creating a N1.5 trillion gap before addressing other public responsibilities.

According to the World Bank’s Nigeria Development Update, capital expenditure fell sharply to N700 billion in the first half of 2026, down from N2.2 trillion in the same period of 2025, highlighting a concerning shift in fiscal priorities.