Nigeria Spends 124 Percent of Revenue on Debt Interest

The Government of Nigeria spent N7.7 trillion on debt interest payments during the first half of 2026, a figure representing 124.2 per cent of its N6.2 trillion total revenue for that period. According to the World Bank's October 2026 Nigeria Development Update, interest payments exceeded total revenue by N1.5 trillion, primarily due to high domestic borrowing costs.

While the interest-to-revenue ratio improved from 155.6 per cent in the first half of 2025, the government allocated 11 times more to interest than to capital projects, which dropped to N700 billion. Total federal spending reached N16.1 trillion, with personnel costs rising to N4.2 trillion. The World Bank estimated the national debt stock at N177 trillion for 2025.

The World Bank cautioned that recent fiscal improvements are the result of subdued capital expenditure rather than sustainable reductions in recurrent obligations. The institution recommended that the government prioritize concessional financing and strengthen revenue mobilization to protect essential development spending.