President Bola Ahmed Tinubu has revealed that Nigeria is projected to spend approximately $11.6 billion on debt servicing in 2026, a figure that represents nearly 50 percent of the country’s expected revenue for the year.
The President made the disclosure while speaking at the Africa Forward Summit in Nairobi, Kenya, where he called for urgent reforms to the global financial system, arguing that African nations are being burdened by unfair borrowing costs and limited access to affordable financing.
According to Tinubu, the rising debt servicing obligation poses a major challenge to Nigeria’s development efforts, as a significant portion of government income is being diverted toward loan repayments instead of critical sectors such as infrastructure, healthcare, education, and social welfare.
He noted that Nigeria’s debt servicing costs are expected to more than double from the estimated $5.15 billion recorded in 2025, highlighting the increasing strain on the nation’s public finances.
Despite the mounting debt burden, the President defended his administration’s economic reforms, including the removal of fuel subsidies, exchange rate unification, and ongoing tax reforms, insisting that these measures are necessary to stabilize the economy and restore investor confidence.
Tinubu also stated that Nigeria’s debt-to-GDP ratio is projected to decline to 32.3 percent in 2026, suggesting that while debt repayments remain high, the overall debt level is still considered manageable relative to the size of the economy. He added that the country’s external reserves have improved to $45.5 billion, signaling growing resilience in the financial system.
The President, however, criticized what he described as a “punitive” international financial architecture that treats African countries as high-risk borrowers, leading to expensive interest rates that undermine long-term development.
“Africa does not seek charity,” Tinubu said. “What we need is a fair and equitable global financial system that allows developing nations to access affordable capital and invest in sustainable growth.”
His remarks come amid increasing public concern over Nigeria’s rising debt profile, especially as inflation, high fuel prices, and the rising cost of living continue to put pressure on households across the country.
Economic analysts have warned that unless revenue generation improves significantly, Nigeria may face tighter fiscal constraints, with debt repayments consuming funds needed for development and poverty reduction.
