The Federal Government has disagreed with the World Bank’s assessment that its interest payments consumed 124 per cent of revenue in the first half of 2026, describing the calculation as misleading and arguing that it fails to capture the full picture of Nigeria’s public finances.

The dispute followed the World Bank’s October 2026 Nigeria Development Update, which reported that the Federal Government spent ₦7.7 trillion on interest payments between January and June 2026, compared with revenue of ₦6.2 trillion.

The figures imply an interest-to-revenue ratio of approximately 124 per cent, meaning the government’s interest bill exceeded its reported revenue by about ₦1.5 trillion during the six-month period.

However, the Federal Ministry of Finance, in a statement issued on Sunday, October 18, argued that the comparison combined debt obligations covering different tiers of government with a revenue figure that did not include all government earnings.

The ministry said the interest-payment figure included debts serviced by the Federal Government on behalf of other tiers of government, including external loans obtained by state governments.

It argued that comparing these obligations with federal revenue alone overstated the ratio because the figures did not cover the same level of government.

The ministry also said the revenue figure excluded independent income already earned by government agencies and enterprises but not yet remitted to the Treasury.

According to the ministry, the timing of tax collections also affects first-half revenue figures, as some statutory payments are concentrated in the second half of the year. It therefore maintained that a six-month comparison should not be treated as a definitive assessment of Nigeria’s debt sustainability.

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To support its position, the government highlighted an improvement in revenue collection between the first halves of 2025 and 2026.

The ministry said Federal Government revenue increased by 72 per cent, rising from ₦3.6 trillion in the first half of 2025 to ₦6.2 trillion in the corresponding period of 2026.

Interest payments, meanwhile, rose by 38 per cent, from ₦5.6 trillion to ₦7.7 trillion over the same period.

The ministry said the difference between interest payments and revenue consequently narrowed from ₦2 trillion in the first half of 2025 to ₦1.5 trillion in the first half of 2026.

It added that the interest-to-revenue ratio fell from 156 per cent to 124 per cent, a decline of 32 percentage points.

The government attributed the improvement to its economic reforms, arguing that revenue was growing faster than interest costs and that the figures did not, on their own, establish that Nigeria was facing a debt crisis.

The ministry further argued that debt sustainability should be assessed using full-year figures, rather than a six-month snapshot that may not reflect the timing of revenue collection and debt payments.

It cited the World Bank’s projection that Nigeria’s full-year 2026 debt service, covering both interest and principal repayments, would amount to 46 per cent of revenue.

The ministry described the projected full-year ratio as a more appropriate benchmark for assessing the government’s debt obligations.

It also defended the Federal Government’s borrowing programme, insisting that borrowing remained within the limits approved by the National Assembly under the 2026 Appropriation Act and the approved borrowing plan.

According to the ministry, the government’s borrowing activities comply with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003, with debt information published regularly by the Debt Management Office.

Despite the government’s objections, the reported figures highlight the pressure that rising interest costs can place on public finances. When interest payments absorb a large share of government revenue, fewer resources may be available for infrastructure, healthcare, education and other public services.

The central disagreement, therefore, concerns the appropriate basis for measuring Nigeria’s debt burden. While the World Bank’s reported figures point to interest payments exceeding federal revenue in the first half of 2026, the Finance Ministry insists that differences in government coverage and revenue timing make the ratio an incomplete measure of the country’s fiscal position.

The Nigeria Labour Congress (NLC), human rights lawyer Femi Falana, and pro-democracy activists have called on Nigerians to unite against rising petrol prices and worsening economic hardship, accusing the Federal Government of pursuing policies that have placed an unbearable burden on workers and low-income households.

The labour leaders and activists made the call at a symposium in Lagos held as part of the first memorial activities in honour of late labour activist Abiodun Aremu. They demanded an immediate reduction in petrol prices, improved wages and a review of economic policies they said had eroded the purchasing power of millions of Nigerians.

NLC President, Joe Ajaero, represented by the union’s Acting General Secretary, Benson Upah, said the removal of the petrol subsidy had significantly increased the cost of living, citing rising transport fares, food prices, electricity tariffs and the depreciation of the naira.

Ajaero said workers were struggling to meet basic needs as the cost of essential goods and services continued to rise faster than their earnings.

He argued that many workers had been forced to make difficult choices between paying high transportation costs and walking long distances to their workplaces, while small businesses were also struggling with increasing operating expenses.

The labour leader further criticised the government for failing to provide sufficient relief to cushion the effects of its economic reforms, arguing that the burden of adjustment had fallen disproportionately on ordinary Nigerians.

According to him, the ₦70,000 national minimum wage has lost much of its purchasing power amid rising inflation and the soaring cost of petrol.

“When the minimum wage was set at ₦70,000 in July 2024, petrol sold for approximately ₦668.30 per litre. Today, prices in many parts of the country have exceeded ₦1,400 per litre,” the NLC said in its address.

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Ajaero described the situation as unacceptable, insisting that a worker earning ₦70,000 monthly could no longer cope with the rising cost of transportation, food, rent, education and healthcare.

He warned that organised labour would intensify pressure on the government if urgent measures were not taken to address the situation.

The NLC president also disclosed that the union had issued a two-week ultimatum to the Federal Government on October 9, demanding an immediate reduction in petrol prices.

He said the ultimatum was intended to compel the government to respond to workers’ concerns and address the widening gap between wages and the cost of living.

According to the union, failure to meet its demands could force organised labour to consider further action.

Beyond petrol prices, the NLC called for measures to stabilise the naira, reduce inflation, strengthen domestic refining capacity and improve workers’ earnings.

Falana, who chaired the symposium, also challenged the Federal Government’s position on petrol subsidy removal, arguing that governments in other countries continued to subsidise essential goods and services to protect citizens from economic shocks.

The Senior Advocate of Nigeria questioned why Nigeria should treat the withdrawal of petrol subsidies as the only available policy option when other countries provide support for fuel, education, healthcare and other essential services.

He argued that the government should consider alternatives capable of reducing the burden on households rather than allowing rising energy costs to deepen poverty.

Falana also criticised the government’s discussion of a possible petrol landing cost of ₦1,350 per litre, noting that transportation and distribution expenses could push the final pump price higher in different parts of the country.

He said Nigerians needed concrete measures that would make petrol more affordable and ease the pressure on households and businesses.

The lawyer also referred to political figures, including Omoyele Sowore and Donald Duke, who he said had advocated petrol prices below ₦500 per litre if given the opportunity to govern.

Meanwhile, Rashidat Adesina, representing the Joint Action Front (JAF), said the increase in petrol prices since the removal of the subsidy in 2023 had placed a disproportionate burden on workers and poor Nigerians.

Adesina recalled that petrol sold for approximately ₦165 per litre before the subsidy was removed, before rising to around ₦500 and subsequently ₦600 per litre.

She said prices had since climbed to between ₦1,350 and ₦1,400 per litre in some locations, depending on the filling station.

Using ₦1,400 per litre as an example, Adesina noted that a worker earning the national minimum wage of ₦70,000 could purchase only 50 litres of petrol with an entire month’s salary.

She argued that the calculation illustrated the pressure on workers, who must also pay for food, rent, school fees, transportation and other household necessities.

Adesina further accused the government of failing to adequately protect low-income earners from the consequences of its economic policies, calling for a change in the country’s economic priorities.

The speakers collectively demanded lower petrol prices, better wages, measures to stabilise the naira and increased investment in domestic refining as part of efforts to address the cost-of-living crisis.

The renewed calls come amid mounting pressure on the Tinubu administration over the impact of petrol subsidy removal and other economic reforms introduced since 2023.

The NLC’s ultimatum has also raised the prospect of further confrontation between organised labour and the Federal Government if an agreement is not reached within the stipulated period.

The labour movement maintains that urgent intervention is necessary to prevent further deterioration in workers’ living standards, while the activists have urged Nigerians to unite in demanding policies that prioritise economic relief and social welfare.