President Bola Tinubu has revealed that Nigeria will spend about $11.6 billion on debt servicing in 2026, warning that high borrowing costs are undermining Africa’s industrialisation drive.
According to a statement issued by presidential spokesperson Bayo Onanuga, Tinubu spoke on Tuesday while leading Nigeria’s government, diplomatic and business delegation to the Africa Forward Summit at the Kenyatta Convention Centre in Nairobi.
The President said the country’s projected debt servicing obligation for 2026 would consume nearly half of expected government revenue.
“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-processing plants, or our digital industries,” Tinubu said.
“It is a dollar that did not train a young Nigerian engineer or provide affordable power for our factories. 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.”
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He argued that Africa’s high borrowing costs make it difficult for local manufacturers to compete globally and described the current international financial system as “an instrument of industrial disarmament for Africa.”
Tinubu said Nigeria was not seeking charity but demanding a fairer financial system that supports industrialisation across the continent.
“We will continue to borrow responsibly, but we insist that our creditworthiness be measured by our economic fundamentals and our industrial potential, not by outdated stereotypes,” he stated.
The President also called for deeper economic integration across Africa and stressed the need for policies that prioritise industrial growth and prosperity.
Highlighting Nigeria’s blue economy potential, Tinubu said insecurity and uncertainty had long hindered the sector’s development. He pledged stronger regional coordination through Nigeria’s Deep Blue Project by offering maritime intelligence infrastructure as a shared data hub for willing Gulf of Guinea states.
“Secure sea lanes, predictable regulation, and functional courts are the preconditions that unlock private capital,” he said, adding that maritime sovereignty was essential for attracting investment and transforming Africa’s ocean economy.
On global finance reforms, Tinubu maintained that Africa must break away from dependence on raw-material exports while importing finished goods at premium prices.
“Despite decades of independence, Africa’s share of global manufacturing value added remains below two per cent,” he said.
“We export raw minerals, crude oil, and agricultural commodities, and we import processed goods at a premium. This pattern is not an accident.”
Tinubu said Nigeria had undertaken “painful, homegrown decisions” to stabilise the economy, including fuel subsidy removal, exchange rate unification, banking recapitalisation, and exiting the Financial Action Task Force grey list.
According to him, the reforms have resulted in a projected debt-to-GDP ratio of 32.3 per cent in 2026, external reserves of $45.5 billion, and renewed investor confidence.
The President also addressed migration challenges, saying irregular migration could only be tackled by creating economic opportunities at home. He called on international partners to invest more in climate adaptation, energy access, digital skills, and job-creating sectors across Africa.
Tinubu further urged stronger African cooperation in shaping global migration governance, while backing African Union initiatives such as the Migration Policy Framework and the Khartoum Process.
The Africa Forward Summit, co-hosted by Emmanuel Macron and William Ruto, brought together leaders and officials from more than 30 countries.
Opening remarks were delivered by Macron, Ruto, António Guterres, and African Union Commission Chair Mahamoud Ali Youssouf.
On the sidelines of the summit, Tinubu met Madagascar’s President, Michael Randrianirina and also held talks with Patrice Motsepe, where he reaffirmed Nigeria’s readiness to host the 2026 CAF Awards.
The Nigerian delegation included senior government officials and leading business figures such as Aliko Dangote, Tony Elumelu, Abdulsamad Rabiu, and Aigboje Aig-Imoukhuede.
The summit focused on investment, artificial intelligence, digitalisation, agriculture, climate change, creative industries, and strategies for translating policy discussions into industrial development across Africa.
