Nigeria Spends More Than Revenue to Service N7.7tn Debt in H1 2026
Federal government spent N7.7tn on debt servicing in the first half of 2026, exceeding revenue of N6.2tn by N1.5tn.
In Brief
- •Federal government spent N7.7tn on debt servicing in the first half of 2026, exceeding revenue of N6.2tn by N1.5tn.
- •Interest payments rose 37.5% to N7.7tn, representing 124.2% of revenue, down from 155.6% in the same period of 2025.
- •Total federal spending increased 10.3% to N16.1tn, with personnel costs up and capital expenditure falling sharply.
- •Fiscal deficit narrowed to N9.9tn (4% of GDP) from N11tn (5%) in the first half of 2025.
- •Nigeria’s total debt stock reached approximately N177tn in 2025, 40% of GDP.
Why It Matters
The debt‑service burden eclipsing revenue signals mounting fiscal pressure, limiting the government’s capacity to fund essential services such as infrastructure, healthcare, and education. A high interest‑to‑revenue ratio also raises concerns about the sustainability of public finances, especially as recurrent and pre‑election expenditures loom. Understanding this dynamic is crucial for investors, policymakers, and citizens who rely on stable public services and prudent fiscal management.
Key Details
- Debt Servicing Expenditure
- N7.7tn
- Federal Revenue
- N6.2tn
- Interest Payments
- N7.7tn (124.2% of revenue)
- Total Federal Spending
- N16.1tn
- Fiscal Deficit
- N9.9tn (4% of GDP)
- Total Debt Stock 2025
- ~N177tn (40% of GDP)
Context & Background
The figures come from the World Bank’s October 2026 Nigeria Development Update, which tracks fiscal performance and debt dynamics in the country.
Original Reporting & Sources
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