Nigeria Spent ₦7.7tn on Interest Payments, Exceeding Federal Revenue in Six Months

The Federal Government spent ₦7.7tn on debt interest payments between January and June 2026, according to the World Bank. This was 124.2% of its ₦6.2tn revenue for the same period, meaning interest costs exceeded revenue by about ₦1.5tn. Revenue rose sharply from ₦3.6tn in the first half of 2025, supported by stronger oil receipts, corporate taxes and independent revenues. However, high domestic borrowing costs pushed interest payments up from ₦5.6tn a year earlier. The report also showed that capital expenditure fell to about ₦700bn. The government therefore spent roughly 11 times more on interest payments than on reported capital projects. The World Bank warned that debt servicing and personnel costs could continue to limit funding for infrastructure and public services.

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