President Bola Tinubu has warned that Nigeria’s debt servicing burden could rise significantly, projecting that the country may spend about $11.6 billion on debt repayments in 2026.
Speaking at the Africa Forward Summit in Nairobi, Kenya, Tinubu said nearly half of Nigeria’s expected revenue could go into debt servicing under the current global financial system, leaving limited funds for development priorities.
He explained that the situation is already straining the economy and reducing government capacity to invest in critical sectors such as agriculture, manufacturing, energy, and technology, which are essential for job creation and long-term growth.
Tinubu also criticised the international financial system, arguing that African countries are often classified as high-risk borrowers despite ongoing reforms and improved fiscal management. According to him, this results in high borrowing costs that hinder industrialisation and economic competitiveness across the continent.
He further noted that expensive access to finance makes it difficult for African economies to build strong industrial value chains and fully benefit from trade frameworks such as the African Continental Free Trade Area (AfCFTA), describing the system as a constraint on Africa’s development.
Defending his administration’s policies, Tinubu said reforms including fuel subsidy removal, exchange rate unification, banking sector adjustments, and Nigeria’s exit from the FATF grey list were difficult but necessary steps to stabilise the economy and restore investor confidence.
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