World Bank puts Nigeria’s debt interest-to-revenue ratio at 124%
By the AFREEQUE newsroom, based on Punch
Nigeria’s debt servicing reportedly exceeded its revenue in the first quarter of 2026, with an interest-to-revenue ratio of 124%, according to the World Bank. Nigeria’s Ministry of Finance disputes this assessment, saying it fails to account for some public revenue and overstates payments attributed to the federal government, Punch reports.
The World Bank estimates that Nigeria’s public debt interest-to-revenue ratio was 124% in the first quarter of 2026, according to its Nigeria Development Update published in October. Nigeria’s Ministry of Finance disputed the calculation, saying it did not accurately reflect the fiscal situation.
The ministry says the calculation includes debt servicing by states, which would inflate the ratio, but does not account for revenue collected by public agencies and companies that had not yet been remitted to the Treasury. It also says certain statutory payment deadlines, usually recorded in the second quarter, should be taken into account before drawing annual conclusions.
The World Bank is concerned about the sustainability of Nigeria’s debt. In an opinion piece published by Punch, economist Sheriffdeen Tella, a lecturer at Olabisi Onabanjo University, and David Adonri, managing director of High Cap Securities, defend the institution’s analysis and urge the government to exercise caution amid rising debt, particularly external debt.
The dispute extends Abuja’s challenge to the 7.7 trillion naira in interest payments, published on 18 October. Nigerian states have also been assessed separately, with a report saying they spent 800.42 billion naira on debt servicing over six months. Nigerian states’ spending on their debt offers another perspective on the burden of public repayments.
