The Federal Government spent N7.7 trillion on debt interest payments in the first half of 2026, which is 124.2 percent above its total revenue of N6.2 trillion for the same period, according to the World Bank.

The figures mean that interest payments alone surpassed the government’s earnings by N1.5 trillion between January and June 2026, raising fresh concerns over Nigeria’s debt burden.

The revelation is contained in the World Bank’s October 2026 Nigeria Development Update titled “Beyond the Federal Purse: How Higher Revenues Shaped State Priorities” obtained by PUNCH Newspapers.

According to the report, interest payments rose by N2.1 trillion or 37.5 percent from N5.6 trillion recorded in the first half of 2025, largely due to high domestic borrowing costs.

The Bank noted that interest payments increased to 3.1 percent of GDP (N7.7tn) from 2.5 percent of GDP (N5.6tn) in the previous year.

However, the interest-to-revenue ratio actually improved from about 155.6 percent in H1 2025 to 124.2 percent in H1 2026 — a drop of 31.4 percentage points — showing some progress despite still exceeding total revenue.

The report also showed that Federal Government revenue grew by N2.6 trillion or 72.2 percent, from N3.6 trillion in H1 2025 to N6.2 trillion in H1 2026, supported by recovery in oil receipts, stronger corporate tax collections and higher independent revenues, while customs revenue remained stable and VAT stayed flat.

Despite the revenue growth, the high interest bill left little for infrastructure and public services.

Source: Punch Newspapers / World Bank Nigeria Development Update Oct 2026