Nigeria Ministry Clarifies Debt Interest Claims

The Ministry of Finance, through its Minister Taiwo Oyedele, issued a clarification on Sunday via the official X account, addressing recent reports about Nigeria's debt interest payments.

The World Bank's Nigeria Development Update from October 2026 cited that interest payments on the country's debt surpassed 124 per cent of its revenue in the first half of 2026.

The ministry contended that the calculation did not consider variations in debt obligations and revenue scope, as well as the seasonal nature of government revenue collection.

It noted that the interest payment figure encompassed debts managed by the Federal Government for other tiers, including state-level external loans, while the revenue figure was restricted to federal income.

The ministry emphasized that the comparison of these figures without adjustments led to an overestimation of the interest-to-revenue ratio.

The ministry also highlighted that Nigeria's full-year 2026 debt service, including both interest and principal, was expected to reach 46 per cent of revenue.