Tinubu says Nigeria will spend $11.6bn on debt servicing in 2026, blames global financial system

President Bola Tinubu has disclosed that Nigeria will spend about $11.6 billion on debt servicing in 2026, warning that the country’s debt obligations are significantly limiting investment in critical sectors of the economy.

Tinubu made the statement on Tuesday at the Africa Forward Summit in Nairobi, Kenya, according to a release by his Special Adviser on Information and Strategy, Bayo Onanuga.

The President said that nearly half of Nigeria’s projected revenue for 2026 would be committed to debt repayment, leaving limited fiscal space for development projects.

“Every single dollar that leaves our treasury to pay punitive interest rates is a dollar that did not go into our steel sector, our textile mills, our agro-processed, or our digital industries,” Tinubu said.

He added that such funds could have been used to train young engineers or improve electricity supply for industries across the country.

Tinubu also argued that African countries continue to face unfair treatment in global financial markets, describing them as “permanent high-risk borrowers” despite ongoing economic reforms.

He criticised the cost of borrowing across the continent, noting that African manufacturers struggle to compete globally due to high interest rates compared to other regions.

“How can an African manufacturer compete with a competitor in Europe, Asia, or North America when the cost of borrowing in our nations is five to ten times higher?” he asked.

The President further described the current international financial system as one that undermines Africa’s industrial growth by restricting access to affordable capital.

Tinubu maintained that Nigeria had taken “painful, homegrown decisions” to stabilise its economy, including fuel subsidy removal, exchange rate unification, banking recapitalisation, and exiting the Financial Action Task Force (FATF) grey list.

He said these reforms have contributed to improved investor confidence, a declining debt-to-GDP ratio projected at 32.3 percent in 2026, and external reserves of about $45.5 billion.

The President added that Nigeria is not seeking financial aid, but a fair global system that enables Africa to industrialise, refine its resources locally, and compete effectively in global markets.

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