The International Monetary Fund (IMF) has assessed Nigeria’s economic situation and submitted that the country would channel more than half of its revenue into servicing debt in 2026.
The development reveals the persistent pressure of debt obligations on the country’s public finances despite signs of improving macroeconomic stability.
The IMF projected that the federal government’s interest payments will account for 53.7 per cent of total revenue in 2026, slightly higher than the 53.2 per cent estimated for 2025 and significantly above the 40.8 per cent recorded in 2024.
The Fund, however, expects a marginal improvement in 2027, when the interest-to-revenue ratio is projected to decline to 52.4 per cent.
The forecast was contained in the IMF’s latest country assessment, which also pointed to improvements in inflation, foreign reserves and overall economic stability following recent reforms.
According to the report, average inflation is expected to ease to 16 per cent in 2026, while Nigeria’s gross international reserves are projected to rise from $40.2 billion in 2024 to $58.1 billion in 2026 before increasing further to $62 billion in 2027.
