President Bola Tinubu has disclosed that Nigeria will spend approximately $11.6 billion on debt servicing in 2026, with nearly half of the country’s projected revenue expected to go towards repaying loans.
The president made this known on Tuesday while speaking at the Africa Forward Summit held in Nairobi, Kenya. The disclosure was contained in a statement issued by Bayo Onanuga, special adviser to the president on information and strategy.
Tinubu lamented that the high cost of debt servicing continues to limit Nigeria’s ability to invest in critical sectors of the economy, noting that substantial resources are being diverted away from industrial and human capital development.
He explained that funds used for repaying loans could have been channelled into key areas such as steel production, textile manufacturing, agro-processing, digital industries, and capacity building for young professionals, as well as improving power supply for industries.
The president also criticised the global financial system, arguing that African countries are persistently classified as high-risk borrowers despite implementing fiscal and economic reforms. According to him, this classification has resulted in significantly higher borrowing costs compared to other regions.
Tinubu warned that the current international financial structure is hindering Africa’s industrialisation efforts by restricting access to long-term and affordable financing. He questioned how African manufacturers could remain competitive globally when borrowing costs on the continent are several times higher than in Europe, Asia, and North America.
He further stated that the financial constraints undermine initiatives such as the African Continental Free Trade Area, particularly in developing cross-border industrial value chains.
Highlighting ongoing reforms, Tinubu said Nigeria has taken “painful, homegrown decisions” to stabilise the economy, including the removal of petrol subsidies, exchange rate unification, banking sector recapitalisation, and exit from the Financial Action Task Force grey list.
He added that these measures have contributed to improvements in key economic indicators, including a projected debt-to-GDP ratio of 32.3 percent in 2026, external reserves estimated at $45.5 billion, and renewed investor confidence.
The president concluded by calling for a reformed global financial system that supports Africa’s industrial ambitions, stressing that the continent seeks fair access to capital rather than financial aid.
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