Nigeria’s debt interest payments rose to N7trn in H1 2026… gulping over 100% of revenue – World Bank

Nigeria’s interest payments rose to N7.7 trillion in the first half of 2026, from N5.6 trillion in the corresponding period of 2025, amid high domestic borrowing costs, according to the World Bank.

The interest payment gulped 124.19 percent of the federal government revenue.

In its 2026 Nigeria Development Update (NDU) titled ‘Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities,’ the bank said interest payments increased to 3.1 percent of gross domestic product (GDP) from 2.5 percent a year earlier.

According to the report, the increase came as federal government revenue improved to N6.2 trillion (2.5 percent of GDP) from N3.6 trillion, or 1.6 percent of GDP, in the first half of 2025.

“Federal revenues rose to about 2.5 percent of GDP (N6.2 trillion), from 1.6 percent of GDP (N3.6 trillion) a year earlier, supported by a recovery in oil receipts, stronger corporate tax collections, and higher independent revenues, while customs revenues held stable and VAT collections stayed comparatively flat,” World Bank said.

“Interest payments increased to 3.1 percent of GDP (N 7.7 trillion) from 2.5 percent (N5.6 trillion) amid high domestic borrowing costs. Reported capital spending fell to 0.3 percent of GDP (N0.7 trillion) from 1.0 percent while other expenditure remained at 1.3 percent.”

The bank said total expenditure declined slightly to N16.1 trillion, or 6.5 percent of GDP, from N14.6 trillion (6.6 percent of GDP), in the corresponding period of 2025.

However, the bank said the composition of spending shifted, with personnel costs rising to N4.2 trillion from N3.7 trillion following wage adjustments, although spending remained unchanged at 1.7 percent of GDP. (TheCable)