President Bola Tinubu has disclosed that Nigeria will spend an estimated $11.6bn on debt servicing in 2026, warning that the burden could significantly constrain investments in key sectors of the economy.
Tinubu made this known on Tuesday while speaking at the Africa Forward Summit held in Nairobi, according to a statement issued by his Special Adviser on Information and Strategy, Bayo Onanuga.
The President said nearly half of the country’s projected revenue for 2026 would be committed to servicing debt obligations under the current global financial system.
He lamented that rising debt costs were diverting funds away from critical sectors needed to drive industrial growth.
“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-processing, or our digital industries,” Tinubu said.
He added that Africa’s industrial base was being weakened by limited access to long-term and affordable financing, while international creditors continued to classify African economies as high-risk borrowers regardless of improvements in fiscal performance.
Tinubu criticised the global financial structure, describing it as a major obstacle to Africa’s industrialisation efforts.
According to him, the high cost of borrowing across African countries—often five to ten times higher than in developed regions—makes it difficult for local manufacturers to compete globally.
He also noted that financing gaps were hindering infrastructure development and undermining the implementation of the African Continental Free Trade Area.
“The international financial architecture, as currently constituted, is an instrument of industrial disarmament for Africa,” he said.
Highlighting steps taken by his administration to stabilise the economy, Tinubu said Nigeria had implemented “painful but necessary” reforms, including the removal of petrol subsidies, unification of exchange rates, banking sector recapitalisation, and exit from the Financial Action Task Force grey list.
He said the measures were sovereign decisions and not externally imposed conditions, adding that they had begun to yield positive outcomes.
Tinubu stated that Nigeria’s debt-to-GDP ratio was projected to decline to 32.3 per cent in 2026, while external reserves had risen to $45.5bn, alongside improved investor confidence.
The President, however, stressed the need for reforms in the global financial system to support Africa’s industrial ambitions.
“We are not asking for charity,” he said. “We are asking for a system that enables us to industrialise, process our minerals, refine our crude, manufacture pharmaceuticals, and compete fairly in the global market.”
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