Nairobi/Abuja — President Bola Ahmed Tinubu says Nigeria is projected to spend approximately $11.6 billion servicing debt obligations in 2026, a figure expected to consume nearly half of the country’s projected government revenue.
Tinubu disclosed the figure while addressing the Africa Forward Summit in Nairobi, co-hosted by Kenyan President William Ruto and French President Emmanuel Macron.
The summit brought together heads of state and senior officials from more than 30 countries to discuss economic transformation, industrialisation, and Africa’s place within the global financial system.
According to the president, Nigeria’s debt servicing burden has more than doubled from the roughly $5.15 billion spent in 2025, based on figures from the Debt Management Office (DMO).
Tinubu argued that the growing fiscal pressure reflects structural problems within the international financial system rather than solely domestic governance failures.
“Our industrial base is being starved of the blood it needs — long-term, affordable finance — while creditors and rating agencies treat African sovereigns as permanent high-risk borrowers, regardless of our fiscal performance,” he said.
The president defended his administration’s economic reforms since taking office in May 2023, including fuel subsidy removal, exchange rate unification, tax restructuring, banking sector recapitalisation, and Nigeria’s exit from the Financial Action Task Force grey list.
According to him, the reforms have contributed to stronger investor confidence, foreign reserves estimated at about $45.5 billion, and a projected debt-to-GDP ratio of 32.3 percent in 2026.
Tinubu nevertheless warned that rising debt servicing costs continue to constrain industrial development by diverting resources away from sectors such as manufacturing, steel production, agro-processing, and digital infrastructure.
He renewed calls for reforms to the global financial architecture, arguing that African economies face disproportionately high borrowing costs, limited access to affordable long-term capital, and persistent illicit financial outflows.
Analysts say the remarks reflect a broader frustration among African leaders over international credit systems that many believe penalise developing economies even after implementing market reforms and fiscal adjustments.
The disclosure also underscores the growing fiscal pressure confronting Nigeria as the government attempts to sustain economic reforms while managing rising living costs and public demands for improved social and economic conditions.