The Federal Government has challenged the World Bank’s assessment of Nigeria’s debt-servicing burden, disputing figures indicating that the country spent a significant share of its revenue on servicing debt.
The disagreement centres on the World Bank’s reported estimate that Nigeria’s debt-service-to-revenue ratio reached 124 per cent, raising concerns about the pressure of debt obligations on government finances.
The Federal Government argues that the figures require clarification, particularly regarding the methodology used to calculate revenue, debt-servicing costs and the period covered by the assessment.
The controversy also involves reported interest payments of approximately ₦7.7 trillion, highlighting the substantial cost of servicing Nigeria’s public debt.
Debt servicing includes interest payments and, depending on the measure being discussed, repayments of principal. These costs can reduce the funds available for infrastructure, healthcare, education and other public services.
The disagreement underscores the importance of transparent and consistent fiscal reporting as Nigeria continues to manage its borrowing obligations and revenue challenges.
