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Finance Ministry faults claim that FG’s interest payments hit 124% of revenue

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The Federal Ministry of Finance has disputed a claim that the Federal Government’s interest payments reached 124 per cent of its revenue in the first half of 2026, describing the figure as misleading.

The ministry said recent analysis and public commentary, which cited the World Bank’s October 2026 Nigeria Development Update, compared mismatched interest figures against an incomplete revenue base.

In a statement released on Sunday, the ministry said the 124 per cent interest calculation includes the debt serviced by the federal government on behalf of other tiers of government, including external loans to states.

“Measuring this against federal revenue alone overstates the ratio, which is only meaningful when debt and revenue cover the same level of government,” the statement said.

The ministry also asserted that the reported revenue is incomplete as it excludes the independent revenue earned by government agencies and enterprises but not yet remitted to the treasury.

“In addition, more revenue is typically earned in the second half of the year than in the first due to the statutory timing of certain payments. This is why the ratio stood at 156% in H1 2025, while the full-year 2025 debt service-to-revenue ratio was below 60%, down from 97% before the reforms,” it stated.

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The ministry explained that federal revenue rose by 72 per cent from ₦3.6 trillion in the first half of 2025 to ₦6.2 trillion in the corresponding period of 2026.

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

“The interest-to-revenue ratio fell by 32 percentage points in a single year, from 156% to 124%, and the gap between interest and revenue narrowed from ₦2.0 trillion to ₦1.5 trillion,” the ministry said.

The ministry attributed the changes to the current administration’s economic reforms, arguing that revenue is growing faster than interest costs.

It argued that a six-month figure alone should not be used to evaluate the sustainability of government debt.

“Debt sustainability is assessed on a full-year basis, not over six months,” the statement said.

READ ALSO: Federal government approves upgrade of four South-South ports

Citing the World Bank report, the ministry said Nigeria’s full-year 2026 debt service, covering both interest and principal, is projected at 46 per cent of revenue, and that this forecast is the appropriate benchmark for assessing the country’s debt-service burden.

The ministry noted that all borrowing falls within the limits approved by the National Assembly under the 2026 Appropriation Act and the approved borrowing plan, in compliance with the Fiscal Responsibility Act 2007 and the Debt Management Office (Establishment) Act 2003.

“We encourage analysts and commentators to apply the same rigour they seek to hold the government to: compare like with like, read figures in context, and seek clarification where the data is unclear,” the ministry said.


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Small Businesses that can Improve your Pension Contributions

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BY NKECHI NAECHE-ESEZOBOR—As a worker, it is good to engage in side hustles to improve your pension contributions monthly, quarterly, half-yearly, or even yearly.

Ideas for Small Businesses

POS: This is one of the cheapest businesses to start. With as little as N100,000, this business will take off. You can set aside a fixed percentage of your side income as your pension contribution.

Retail business: Provisions, foodstuffs, and even catering services such as small chops groundnuts, popcorn, snacks are also side hustles that can contribute to your pension savings.

Laundry services: This is another idea that is affordable and easy to start without needing much money. It can be set up on a small scale.

Vegetable farming / poultry or fish farming: Vegetables such as ugu, okro, ewedu, efo shoko, and efinrin can be planted in jerrycans and empty rice bags. You can get a carpenter to build small chicken pens so you can start your poultry business. For catfish, you just need bowls and a small space.

Service provider: Services such as freelance writing, transcription, and lecturing as a lesson teacher for WAEC, GCE,NECO JAMB, French, etc. can be done while still in active service. Some of these can be done on weekends, part-time, or even online.

You don’t need to struggle in retirement if you do the right thing.

The post Small Businesses that can Improve your Pension Contributions appeared first on Business Today NG.

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Dangote Foundation to gift refinery shares to 778,000 women in 15 states

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The Aliko Dangote Foundation (ADF) has said 777,907 vulnerable women across 15 Nigerian states are on track to benefit from 15.56 million shares in Dangote Petroleum Refinery and Petrochemicals under its Women Share Subscription Grant Initiative.

In a statement issued on Sunday by Zouera Youssofou, its managing director/CEO, the foundation said the programme aims to promote financial inclusion and empower women through equity ownership in one of Africa’s largest industrial investments.

“A total of 777,907 underprivileged Nigerian women across 15 states are set to benefit from 15.56 million shares in Dangote Petroleum Refinery and Petrochemicals IPO under the Aliko Dangote Foundation’s (ADF) Women Share Subscription Grant Initiative,” the statement said.

The initiative forms part of the foundation’s broader target of empowering two million vulnerable women across Nigeria’s 36 states and the Federal Capital Territory (FCT), it stated further.

The foundation said 15 state governments have committed to participating in the programme, under which each state’s financial contribution will be matched by the foundation to provide beneficiaries with shares at no cost to the beneficiaries.

The participating states include Abia, Anambra, Borno, Ebonyi, Enugu, Gombe, Imo, Kebbi, Kwara, Lagos, Nasarawa, Niger, Plateau, Yobe and Zamfara.

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Last week, PREMIUM TIMES reported that the Dangote Petroleum Refinery and Petrochemicals extended its ongoing $1.6 billion IPO, originally scheduled to end on 13 October, by two weeks to enable broader participation across Africa, following robust, continent-wide interest.

Since its launch, the IPO has been heralded as the biggest-ever on the continent. It is offering 4.1 billion shares at N525 per unit, with a minimum subscription of 10 shares. Its green shoe option allows an additional 30 per cent of the shares on offer to be sold if it is oversubscribed.

In July, a private placement ahead of the IPO was 270 per cent oversubscribed, even though the original plan was to raise $2.5 billion.

The IPO attracted billions of naira within minutes of opening, with a couple of trading platforms, including Bamboo and Cowrywise, experiencing downtime on the first day on account of unprecedented subscription traffic.

Shares allocation

The foundation noted that Gombe State has emerged as the first participating state to make full payment towards the initiative, marking a milestone in its implementation.

Under the arrangement, each beneficiary is eligible to receive 20 shares at an indicative allocation price of N525 per share, giving each recipient an allocation valued at N10,500.

The state government will finance 10 shares per beneficiary, while the foundation will provide a matching contribution for the remaining 10 shares.

The initiative, according to the statement, seeks to extend the benefits of the IPO beyond institutional and high net-worth individuals to vulnerable women, many of whom may be participating in the capital market for the first time.

Rather than relying solely on conventional financial assistance, the programme intends to give beneficiaries ownership of productive assets and an opportunity to participate in long-term wealth creation.

The foundation’s target of reaching two million women across all 774 local government areas underscores its ambition to expand financial inclusion and broaden individual participation in Nigeria’s capital market.

ADF acknowledged the support of the Nigerian Exchange and the Securities and Exchange Commission in advancing the initiative’s financial inclusion objectives.

The programme runs simultaneously with the foundation’s Tertiary Students Share Subscription Grant Initiative, which is designed to support eligible students looking to participate in the IPO.

Under the students’ initiative, the foundation supports applications for 10 shares on behalf of each participating eligible student at no cost.


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