The Federal Ministry of Finance has disputed a declare that the Federal Executive’s curiosity bills reached 124 consistent with cent of its profit within the first part of 2026, describing the determine as deceptive.
The ministry mentioned fresh research and public statement, which cited the Global Financial institution’s October 2026 Nigeria Building Replace, when put next mismatched curiosity figures towards an incomplete profit base.
In a observation launched on Sunday, the ministry mentioned the 124 consistent with cent curiosity calculation contains the debt serviced by way of the government on behalf of different tiers of presidency, together with exterior loans to states.
“Measuring this towards federal profit by myself overstates the ratio, which is handiest significant when debt and profit duvet the similar degree of presidency,” the observation mentioned.
The ministry additionally asserted that the reported profit is incomplete because it excludes the unbiased profit earned by way of executive businesses and enterprises however now not but remitted to the treasury.
“As well as, extra profit is most often earned in the second one part of the 12 months than within the first because of the statutory timing of sure bills. Because of this the ratio stood at 156% in H1 2025, whilst the full-year 2025 debt service-to-revenue ratio used to be under 60%, down from 97% prior to the reforms,” it said.
The ministry defined that federal profit rose by way of 72 consistent with cent from ₦3.6 trillion within the first part of 2025 to ₦6.2 trillion within the corresponding duration of 2026.
Hobby bills, alternatively, rose by way of 38 consistent with cent, from ₦5.6 trillion to ₦7.7 trillion over the similar duration, in step with the ministry.
“The interest-to-revenue ratio fell by way of 32 proportion issues in one 12 months, from 156% to 124%, and the distance between curiosity and profit narrowed from ₦2.0 trillion to ₦1.5 trillion,” the ministry mentioned.
The ministry attributed the adjustments to the present management’s financial reforms, arguing that profit is rising quicker than curiosity prices.
It argued {that a} six-month determine by myself will have to now not be used to guage the sustainability of presidency debt.
“Debt sustainability is classified on a full-year foundation, now not over six months,” the observation mentioned.
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Bringing up the Global Financial institution document, the ministry mentioned Nigeria’s full-year 2026 debt carrier, protecting each curiosity and major, is projected at 46 consistent with cent of profit, and that this forecast is the correct benchmark for assessing the rustic’s debt-service burden.
The ministry famous that each one borrowing falls throughout the limits licensed by way of the Nationwide Meeting below the 2026 Appropriation Act and the licensed borrowing plan, in compliance with the Fiscal Duty Act 2007 and the Debt Control Administrative center (Established order) Act 2003.
“We inspire analysts and commentators to use the similar rigour they search to carry the federal government to: evaluate like with like, learn figures in context, and search explanation the place the knowledge is unclear,” the ministry mentioned.
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