Nigeria’s federal government (FG) spent N7.7 trillion on interest payments in the first half of 2026, exceeding its total revenue of N6.2 trillion by N1.5 trillion, according to the World Bank.
In its 2026 Nigeria Development Update, titled Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities, the bank said interest payments rose from N5.6 trillion in the first half of 2025 to N7.7 trillion in the corresponding period of 2026, amid high domestic borrowing costs.
The payments gulped 124.19 per cent of federal revenue and increased from 2.5 per cent to 3.1 per cent of gross domestic product (GDP).
According to the report, federal revenue improved to N6.2 trillion, or 2.5 per cent of GDP, from N3.6 trillion, or 1.6 per cent of GDP, in the first half of 2025.
The World Bank attributed the increase to a recovery in oil receipts, stronger corporate tax collections and higher independent revenues. Customs revenue remained stable, while value-added tax (VAT) collections stayed comparatively flat.
Despite the revenue increase, reported capital spending fell to N700 billion, or 0.3 per cent of GDP, from N2.2 trillion, or 1 per cent of GDP, in the same period of 2025.
Total federal expenditure rose to N16.1 trillion, equivalent to 6.5 per cent of GDP, from N14.6 trillion, or 6.6 per cent of GDP, a year earlier.
Meanwhile, personnel costs increased to N4.2 trillion from N3.7 trillion following wage adjustments, although they remained at 1.7 per cent of GDP.
