Nigeria Debt Servicing to Hit $11.6bn in 2026, Tinubu Warns of Economic Strain on Growth

President Bola Ahmed Tinubu has revealed that Nigeria is projected to spend a staggering $11.6 billion on debt servicing in 2026, marking a sharp increase from the $5.21 billion recorded in 2025, according to data from the Central Bank of Nigeria. The announcement has sparked renewed concerns over the country’s rising debt obligations and their impact on economic development.

Tinubu made the remarks at the Africa Forward Summit held in Nairobi, Kenya, where he addressed regional leaders and policymakers on Africa’s financial challenges. According to a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, the president said nearly half of Nigeria’s projected revenue in 2026 could be consumed by debt repayments.

The president warned that the heavy debt burden is directly limiting Nigeria’s ability to invest in key sectors such as manufacturing, agriculture, energy, and technology. He stressed that every dollar used for debt servicing is a missed opportunity to fund industrial growth, job creation, and infrastructure development across the country.

Tinubu also criticized the global financial structure, arguing that African countries are unfairly treated as high-risk borrowers despite ongoing reforms and economic adjustments. He said high borrowing costs continue to weaken Africa’s industrial ambitions and make it difficult for local businesses to compete globally under frameworks like the African Continental Free Trade Area (AfCFTA).

Despite the challenges, Tinubu highlighted Nigeria’s recent economic reforms, including fuel subsidy removal, exchange rate unification, banking sector recapitalisation, and the exit from the Financial Action Task Force (FATF) grey list. He said these measures have helped strengthen investor confidence, reduce debt-to-GDP ratio projections to 32.3 percent in 2026, and boost external reserves to $45.5 billion.

The president concluded by calling for a more inclusive global financial system that supports Africa’s industrialisation rather than dependency on raw commodity exports. He emphasized that Nigeria is not seeking aid, but a fair financial environment that enables African nations to refine, manufacture, and compete on equal footing in the global economy.

source: The cable