The Federal Government spent N7.7 trillion on interest payments in the first half of 2026, exceeding its N6.2 trillion revenue by N1.5 trillion, according to the World Bank.
The bank disclosed this in its October 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Shaped State Priorities.
The report said interest payments rose by 37.5 per cent from N5.6 trillion in the corresponding period of 2025, driven largely by high domestic borrowing costs.
Despite the increase, the interest-to-revenue ratio improved from 155.6 per cent in the first half of 2025 to 124.2 per cent in 2026.
Federal Government revenue also rose by 72.2 per cent, from N3.6 trillion to N6.2 trillion during the period.
However, the World Bank noted that interest obligations continued to exceed government revenue, limiting funds available for infrastructure, public services and other spending commitments.
