← Back to briefingZenaHub.
Englishአማርኛ
Economy

Nigeria Rejects World Bank Report on 124% Interest

BirrMetrics · 15 hours ago · Read the Full Story on BirrMetrics
Nigeria Rejects World Bank Report on 124% Interest
AI SUMMARY

Nigeria's Federal Ministry of Finance has rejected a World Bank report stating that interest payments consumed 124 percent of federal revenue in the first half of 2026, calling the findings misleading.

  • Nigeria's Federal Ministry of Finance rejected the World Bank's report that Federal Government interest payments consumed 124 percent of revenue in the first half of 2026.
  • The ministry stated that the disputed calculation sets debt obligations serviced for other tiers of government against federal revenue alone while omitting certain income sources.
  • Federal revenue grew by 72 percent from ₦3.6 trillion in H1 2025 to ₦6.2 trillion in H1 2026.
  • Interest payments rose by 38 percent from ₦5.6 trillion to ₦7.7 trillion over the same period, causing the interest-to-revenue ratio to fall from 156 percent to 124 percent.
  • The ministry cited a World Bank projection that Nigeria's full-year 2026 debt service, including principal, will equal 46 percent of revenue.
  • The World Bank's October 2026 Nigeria Development Update reported that interest payments consumed 124.2 percent of federal revenue between January and June, exceeding government earnings by ₦1.5 trillion.
  • The World Bank attributed the surge to high domestic borrowing costs, with interest payments climbing from 2.5 percent to 3.1 percent of GDP.
  • Total public debt stood at ₦166.79 trillion as of June 2026, up from ₦159.35 trillion in March, with domestic debt accounting for about 55 percent.
  • The African Development Bank warned that debt-interest payments now rival or exceed public health spending, and the IMF urged Nigeria to broaden its tax base.
Read the Full Story on BirrMetrics
Related
New Directive Allows CEOs of State-Owned Enterprises to Write Off Uncollectible Accounts Up to 50 Million Birr
Sheger FM · 9 hours ago
Ethiopia Looking For Private Capital to Finance AI and Digital Skills
BirrMetrics · 15 hours ago
EU Deforestation Rules Threaten 60% of Ethiopian Coffee Smallholders
BirrMetrics · 15 hours ago
Chinese Firms Sign Deal to Expand Ethiopia’s LNG Production
BirrMetrics · 15 hours ago