Nigeria’s Debt Burden Exceeds Revenue Amid Rising Interest Payments

The Federal Government's interest payments in the first half of 2026 reached N7.7tn, surpassing its total revenue of N6.2tn by N1.5tn, as reported by the World Bank. This deficit highlights Nigeria's growing debt challenges despite improved revenue collections.

Interest obligations rose by N2.1tn, a 37.5 per cent increase from N5.6tn in the same period of 2025, driven by higher domestic borrowing costs, according to the World Bank report.

The government's revenue grew by N2.6tn, or 72.2 per cent, from N3.6tn in early 2025 to N6.2tn in the first half of 2026, yet interest payments still exceeded total revenue, limiting funds for infrastructure and public services.