High borrowing, illicit financial flows responsible for Africa’s underdevelopment – Tinubu

President Bola Ahmed Tinubu has blamed illicit financial flows, restrictive global financial policies and high borrowing costs for the underdevelopment of Africa’s manufacturing sector, warning that the continent will continue to lag behind unless structural inequalities in the global financial system are addressed.

According to a statement issued by presidential spokesperson, Bayo Onanuga, Tinubu made the remarks on Tuesday at the Africa Forward Summit in Nairobi, Kenya, co-hosted by French President Emmanuel Macron and Kenyan President William Ruto.

Speaking during a session on financing industrial development attended by leaders from over 30 countries, Tinubu lamented that Africa contributes less than two per cent to global manufacturing because the continent largely exports raw materials while importing finished products.

“How can an African manufacturer compete with competitors in Europe, Asia, or North America when borrowing costs in Africa are five to ten times higher?” Tinubu asked.

The President warned that the current global financial architecture risks losing relevance if it fails to address the structural disadvantages confronting developing economies.

Tinubu said Nigeria had embarked on major economic reforms aimed at restoring investor confidence, including the removal of fuel subsidies, exchange rate unification and a banking recapitalisation programme valued at over $45.5 billion.

Despite the reforms, he noted that increasing debt servicing obligations continue to limit investments in industrialisation and infrastructure development.

According to him, Nigeria is projected to spend about $11.6 billion on debt servicing in 2026, reducing the country’s fiscal space for critical sectors.

Tinubu further argued that illicit financial flows and restrictive international policies continue to weaken Africa’s industrial competitiveness, insisting that the continent must move beyond exporting raw materials.

He stressed that African countries should begin processing minerals locally, refining crude oil domestically and manufacturing essential products such as pharmaceuticals to achieve sustainable economic growth.

The President also promoted Nigeria’s blue economy strategy as a key driver of regional integration and maritime economic expansion across Africa.

“Interoperable systems, harmonised laws, and seamless joint enforcement must become operational realities,” Tinubu said.

“Secure sea lanes, predictable regulations, and functional courts remain essential to unlocking private sector investments in Africa’s maritime economy.”

He disclosed that Nigeria would make its Deep Blue Project maritime intelligence infrastructure available as a regional data hub for Gulf of Guinea countries.

Tinubu also pledged continued investment in climate-aligned port modernisation and digital transformation within the maritime sector.

He urged African nations to move “from sea blindness to ocean sovereignty” through stronger maritime cooperation and improved security coordination.

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