World Bank Commends Nigeria as Private Capital Inflows Hit $6bn

By Emmanuel Olugua
The World Bank Group President, Ajay Banga, has commended Nigeria’s private capital inflows, which have risen to nearly six billion dollars in 2026 from 300 million dollars in 2023.
Banga gave the commendation during a meeting with the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, and the Central Bank of Nigeria (CBN) Governor, Mr Olayemi Cardoso, yesterday in Bangkok.
The meeting was held on the sidelines of the 2026 IMF and World Bank Group Annual Meetings.
It also explored ways Nigeria could leverage World Bank guarantee instruments to unlock infrastructure financing and attract more private capital into the domestic economy.
The World Bank president commended Nigeria’s reform progress, as discussions focused on translating macroeconomic stability into faster economic growth, increased private investment, and stronger domestic revenue generation.
Oyedele highlighted Nigeria’s improving economic growth and disclosed that the country’s tax-to-GDP ratio had increased from about seven per cent to 12.5 per cent.
He said that the improvement provided the government with greater capacity to finance public investment without resorting to deficit monetisation.
The minister identified power infrastructure and human capital development as priority areas requiring sustained public investment to improve business competitiveness, productivity, and job creation.
He said that the engagement formed part of the Federal Government’s broader efforts to consolidate reform gains and attract fresh investments through partnerships with development institutions.
He said that the country’s priority was to translate improved economic fundamentals into productive investments, employment opportunities, and better living standards for citizens.
The participants also emphasised the need to improve public spending efficiency to ensure that government expenditure delivered measurable economic and social benefits.
Meanwhile, Nigeria’s debt interest payments surged by 37.5 per cent to N7.7 trillion in the first half of 2026 from N5.6 trillion in the corresponding period of 2025.
This indicates that the interest payments exceeded the Federal Government’s revenue of N6.2 trillion during the period by N1.5 trillion, representing 24.2 per cent.
The World Bank disclosed this in its 2026 Nigeria Development Update (NDU), titled ‘Beyond the Federal Purse: How Higher Revenues Reshaped State Priorities’.
According to the report, interest payments rose to 3.1 per cent of Gross Domestic Product (GDP) in the first half of 2026, from 2.5 per cent in the corresponding period of 2025, highlighting the growing pressure of debt servicing on public finances.
The increase came despite a significant improvement in Federal Government revenue, which rose by more than 72 per cent to N6.2 trillion, representing 2.5 per cent of GDP, from N3.6 trillion, or 1.6 per cent of GDP, in the first half of 2025.
The bank attributed the revenue growth to a recovery in oil receipts, stronger corporate tax collections, and higher independent revenues, while customs revenues remained stable and Value Added Tax (VAT) collections were comparatively flat.
It stated: “Federal revenues rose to about 2.5 per cent of GDP (N6.2 trillion), from 1.6 per cent of GDP (N3.6 trillion) a year earlier, supported by a recovery in oil receipts, stronger corporate tax collections, and higher independent revenues, while customs revenues held stable and VAT collections stayed comparatively flat.”
On expenditure, the World Bank said interest payments increased to 3.1 per cent of GDP, or N7.7 trillion, from 2.5 per cent, or N5.6 trillion, amid high domestic borrowing costs.
The rising debt burden coincided with a sharp decline in reported capital expenditure, which fell to 0.3 per cent of GDP, or N700 billion, from 1.0 per cent in the corresponding period of 2025. Other expenditure remained unchanged at 1.3 per cent of GDP.
Meanwhile, total government expenditure rose to N16.1 trillion in the first half of 2026 from N14.6 trillion a year earlier, although it declined marginally as a share of GDP to 6.5 per cent from 6.6 per cent.
Personnel costs also increased to N4.2 trillion from N3.7 trillion following wage adjustments, but remained unchanged at 1.7 per cent of GDP.
The figures underscore the pressure of rising debt-servicing costs on the Federal Government’s fiscal position, with interest payments exceeding revenue and reported capital spending accounting for a smaller share of economic output.