Nigerian President Bola Tinubu has called for a major overhaul of the global financial system, warning that rising debt servicing costs are consuming resources needed for infrastructure, healthcare, education and industrial development across Africa.
Speaking at the Africa Forward Summit in Nairobi, Tinubu said Nigeria is projected to spend about $11.6 billion servicing debt in 2026, nearly half of the country’s expected government revenue for the year. The figure marks a sharp increase from the approximately $5.15 billion Nigeria spent on debt servicing in 2025.
Tinubu argued that African countries are being unfairly treated as high risk borrowers in global financial markets, forcing them to pay punitive interest rates that crowd out investment in key sectors of the economy.
“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,” he said during the summit.
The Nigerian leader said the current structure of global finance continues to disadvantage African economies by limiting access to affordable long term capital needed for industrialisation and economic expansion. He called for cheaper financing, stronger regional integration and reforms that would allow African countries to process their own raw materials and compete more effectively in global manufacturing markets.
Tinubu’s remarks come as his administration continues implementing some of Nigeria’s most significant economic reforms in decades. Since taking office, the government has removed costly fuel subsidies, liberalised the foreign exchange market and introduced major tax reforms aimed at stabilising public finances and attracting investment.
The president said the reforms were “painful” but necessary to restore macroeconomic stability after years of fiscal strain, foreign exchange shortages and inflationary pressure. However, he warned that the gains from those reforms risk being undermined by rising debt repayment obligations and expensive borrowing conditions.
Nigeria’s debt burden has increasingly become a major concern for economists and investors. Recent budget documents show the federal government allocated roughly $11.5 billion for debt servicing in the 2026 budget, making it one of the country’s largest expenditure items.
Analysts say high debt servicing costs are limiting the government’s ability to invest aggressively in infrastructure, power, manufacturing and social programmes needed to drive long term economic growth.
The summit in Nairobi, co-hosted by Kenya and France, brought together leaders from more than 30 countries to discuss investment, financing reform and economic cooperation across Africa.
Tinubu insisted Nigeria was not seeking charity from global institutions but demanding a fairer financial framework that would allow African economies to industrialise and build stronger domestic industries.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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