Why Nigeria’s 124% debt interest-to-revenue ratio under Tinubu is misleading - Finance Ministry

The Federal Ministry of Finance has defended the Federal Government against claims that involvement payments connected its indebtedness reached 124 per cent of gross successful the archetypal fractional of 2026, describing the mentation arsenic misleading.

The ministry made a clarification successful a connection published connected the authoritative X relationship of the Minister of Finance, Taiwo Oyedele, connected Sunday.

Recall that that determination are reports that the Nigerian government’s involvement payments connected its indebtedness exceeded 124 per cent of its gross successful the archetypal fractional of 2026, citing the World Bank’s October 2026 Nigeria Development Update.

Reacting, the ministry said the calculation failed to relationship for differences successful the scope of indebtedness obligations and gross figures, portion besides overlooking the seasonal signifier of authorities gross collection.

The Federal Government noted that the assertion did not supply a implicit representation of the country’s fiscal position.

It argued that the involvement outgo fig included debts serviced by the Federal Government connected behalf of different tiers of government, including outer loans obtained by states, portion the gross fig was constricted to national receipts.

According to the ministry, comparing the 2 figures without adjusting their sum overstated the interest-to-revenue ratio.

The ministry stre...