Manny Ita –
Bola Ahmed Tinubu has called for a major overhaul of the global financial system, arguing that African countries are being unfairly punished with high borrowing costs that are draining funds meant for development.
Speaking at the Africa Forward Summit in Nairobi, Kenya, Tinubu said Nigeria is projected to spend about $11.6 billion on debt servicing in 2026 — nearly half of the country’s expected government revenue.
The Nigerian president said the current global financial structure treats African nations as high-risk borrowers, leading to what he described as “punitive” interest rates and limited access to long-term financing. He argued that the situation continues to weaken industrial growth across the continent.
Tinubu defended his administration’s economic reforms — including fuel subsidy removal, naira devaluation and tax restructuring — saying the policies were necessary to stabilise the economy and restore investor confidence after years of economic pressure.
However, he warned that gains from the reforms could be undermined if African economies continue to face expensive debt obligations and limited access to fair financing.
“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,” Tinubu said during the summit.
He also called for:
cheaper and fairer financing for African countries,
stronger industrialisation policies,
reduction of illicit financial flows from Africa,
and reforms that would allow African nations to process and add value to their own natural resources instead of exporting raw materials.
Tinubu stressed that Nigeria and other African countries are “not asking for charity,” but demanding a fairer global financial system that supports growth and industrial development.
