Nigeria to Spend Nearly Half of Revenue on Debt Servicing

Nigeria’s President Bola Ahmed Tinubu says the country will spend almost $11.6 billion servicing debt in 2026, nearly half of its projected government revenue.

Speaking at the Africa Forward Summit in Nairobi, Tinubu said rising debt-servicing costs are limiting investment in infrastructure, healthcare, education and industrial development.

The president criticised the global financial systems for treating African countries as high-risk borrowers despite ongoing economic reforms across the continent.

Tinubu said Nigeria had implemented major economic reforms, including fuel subsidy removal, exchange rate unification and banking sector reforms, in an effort to stabilise the economy and to restore investor confidence.

He also called for reforms in global financial institutions to improve access to affordable financing for African economies and support industrial growth.

Economic analysts continue to warn that debt servicing remains a major challenge for Nigeria’s long-term economic stability.

SOURCE: Reuters