President Bola Tinubu has warned that Nigeria may spend up to $11.6 billion on debt servicing in 2026 if current global financial conditions persist.
Speaking at the Africa Forward Summit in Nairobi, Tinubu said nearly half of Nigeria’s projected revenue could go toward debt payments, leaving limited funds for development priorities.
He said the rising cost of debt repayment was straining the economy and reducing the government’s capacity to invest in agriculture, manufacturing, energy and technology, sectors he described as critical for sustainable growth and job creation.
Tinubu also criticized the global financial system, arguing that African countries face unfair treatment in international credit markets despite reforms and improved fiscal discipline. He said the continent was still viewed as high-risk, driving up borrowing costs and slowing industrial development.
“Expensive access to finance remains one of the major obstacles preventing African economies from building competitive industrial value chains and maximising opportunities under the African Continental Free Trade Area,” he said.
ECOWAS parliamentarians interrogate 6-pillar strategy on regional integration
The president called for reforms to give developing nations access to fair and affordable financing.
He defended his administration’s economic policies, including the removal of fuel subsidy, exchange rate unification, banking sector reforms, and Nigeria’s exit from the FATF grey list, describing them as difficult but necessary steps to stabilize the economy and rebuild investor confidence.
Stay ahead with the latest updates! Join The ConclaveNG on WhatsApp and Telegram for real-time news alerts, breaking stories, and exclusive content delivered straight to your phone. Don’t miss a headline — subscribe now!
