President says rising debt obligations are choking investments in critical sectors
President Bola Ahmed Tinubu has revealed that Nigeria will spend about $11.6 billion on debt servicing in 2026, warning that the country’s growing financial obligations are severely limiting investments in infrastructure, healthcare, education, and industrial growth.
Tinubu made the disclosure while speaking at the Africa Forward Summit in Nairobi, Kenya, where he criticised the global financial system for placing African countries under crippling borrowing conditions. According to the President, nearly half of Nigeria’s projected revenue for 2026 could go into servicing debt alone.
The President argued that Africa continues to suffer under what he described as an unfair international financial architecture that treats the continent as a high-risk region, thereby increasing borrowing costs and weakening economic expansion. He stressed that every dollar spent on debt repayment reduces the government’s ability to invest in sectors capable of creating jobs and driving industrialisation.
Tinubu also defended ongoing economic reforms introduced by his administration, including subsidy removal, tax reforms, and banking recapitalisation, insisting that the policies were necessary to stabilise the economy and attract long-term investments. However, the disclosure has already reignited concerns among Nigerians over the country’s rising debt profile and worsening economic hardship.
Economic analysts say the debt servicing figure underscores the enormous pressure on Nigeria’s finances at a time when inflation, unemployment, and the cost of living remain major concerns for millions of citizens. Social media reactions have also intensified, with critics questioning how much impact the reforms are truly having on ordinary Nigerians.
The President’s comments are expected to fuel further debate over Nigeria’s fiscal sustainability, especially as the government pushes for more foreign investments and broader economic restructuring ahead of the 2027 political cycle.