President Bola Tinubu has disclosed that Nigeria will spend $11.6 billion on debt servicing in 2026.
Tinubu addressed the Africa Forward Summit in Nairobi, Kenya, on Tuesday, according to a statement from Bayo Oyenuga, the president’s special assistant on strategy and communication.
According to Tinubu, debt servicing under the current global financial system would account for about half of Nigeria’s estimated earnings for 2026.
Tinubu also claims that every dollar spent on debt repayment reduces investment in vital economic areas.
He said, “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-processed, or our digital industries.”
“It is a dollar that did not train a young Nigerian engineer or provide affordable power for our factories.”
Tinubu said lenders still classify African countries as long-term high-risk borrowers despite the reforms and fiscal adjustments many governments across the continent have introduced.
The president also said the current global financial system is weakening Africa’s industrialisation drive by denying countries access to affordable financing.
The president claims that rather than keeping nations reliant on commodity exports, Nigeria needs a financial framework that encourages industrialisation throughout Africa.
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Meanwhile, this comes just weeks after Arise TV anchor, Rufai Oseni, criticised the Tinubu administration Tinubu over Nigeria’s growing debt burden.
Rufai warned that the country’s heavy reliance on borrowing could further weaken the economy if funds are not effectively managed.
Amid this surging debt servicing cost, the Federal Government has currently stepped up talks with the World Bank for a fresh $1.25 billion loan, according to a document obtained by Channels Television.
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