President Bola Tinubu warned that Nigeria will allocate approximately $11.6 billion to debt servicing in 2026, consuming nearly half of projected revenues.
Speaking at the Africa Forward Summit in Nairobi, Tinubu argued that high interest rates create a structural disadvantage for African economies.
Debt obligations have surged significantly compared to the $5.15 billion spent in 2025, according to official Debt Management Office data.
The President stated that these massive payments are crowding out essential investments in healthcare, education, and critical national infrastructure projects.
He lamented that every dollar sent abroad for interest is a dollar lost for domestic steel, textile, and digital industries.
Tinubu called for an overhaul of a global financial system that he claims unfairly penalizes African borrowers as high-risk sovereigns.
While defending his administration’s painful homegrown reforms, he noted that external financial pressures are eroding hard-won macroeconomic stability.
The Nigerian government has recently scrapped fuel subsidies and devalued the currency to address inflation and foreign exchange shortages.
Looking toward the 2027 elections, the President emphasized that Nigeria seeks industrialization and fair market competition rather than international charity.
He urged global leaders to curb illicit financial flows and provide cheaper financing to help Africa increase its manufacturing share.
The global community remains watchful as Nigeria navigates this precarious balance between fiscal reform and a mounting debt burden.