Tinubu Warns Over Rising Debt Costs

President Bola Tinubu has warned that Nigeria could spend about $11.6 billion on debt servicing in 2026 under the current global financial system. Speaking at the Africa Forward Summit in Nairobi, Kenya, the president said rising repayment obligations could consume nearly half of the country’s projected revenue.

According to Tinubu, the growing debt servicing burden is already placing pressure on Nigeria’s economy and limiting the government’s ability to fund critical sectors. He explained that industries such as agriculture, manufacturing, energy and technology require stronger investment to support job creation and long-term economic growth.

The president also criticised the international financial structure, arguing that African nations often face unfair treatment in global lending markets. He said many countries on the continent continue to receive high-risk classifications despite implementing reforms and improving fiscal management. Tinubu noted that these ratings increase borrowing costs and weaken economic competitiveness across Africa.

Speaking further, the Nigerian leader said expensive financing makes it harder for African countries to build industrial value chains and maximise opportunities under the African Continental Free Trade Area (AfCFTA). He described the current system as a major obstacle to Africa’s broader economic development goals.

Defending his administration’s economic reforms, Bola Tinubu stated that policies such as fuel subsidy removal, exchange rate unification, banking sector reforms and Nigeria’s exit from the FATF grey list were necessary steps to stabilise the economy.

He added that although the reforms created short-term difficulties, they were designed to restore investor confidence and strengthen Nigeria’s long-term financial outlook. Analysts believe the government’s challenge now lies in balancing economic reforms with rising public concerns over inflation, living costs and debt repayments.

Can Nigeria reduce its growing debt burden while still funding key sectors needed for economic growth?