Bola Ahmed Tinubu has blamed illicit financial flows, restrictive global financial policies, and high borrowing costs for the underdevelopment of Africa’s manufacturing sector, warning that the continent will continue to lag behind unless structural inequalities in the global financial system are addressed.
According to a statement issued by presidential spokesperson Bayo Onanuga, Tinubu made the remarks on Tuesday while participating in the Africa Forward Summit in Nairobi, co-hosted by Emmanuel Macron and William Ruto.
Speaking during a session on financing industrial development attended by leaders from more than 30 countries, Tinubu said Africa’s contribution to global manufacturing remains below two per cent because the continent continues to export raw materials while importing finished products.
“How can an African manufacturer compete with competitors in Europe, Asia, or North America when borrowing costs in Africa are five to ten times higher?” Tinubu asked.
The Nigerian leader warned that the global financial architecture risks losing relevance if it fails to confront the structural disadvantages facing developing economies.
Tinubu said Nigeria had embarked on major economic reforms aimed at restoring investor confidence, including the removal of fuel subsidies, exchange rate unification, and a banking recapitalisation programme valued at more than $45.5 billion.
Despite the reforms, he noted that rising debt servicing obligations continue to constrain investments in industrialisation and infrastructure.
According to the President, Nigeria is projected to spend about $11.6 billion on debt servicing in 2026, significantly limiting fiscal space for critical sectors of the economy.
Tinubu also argued that illicit financial flows and restrictive international policy frameworks continue to weaken Africa’s industrial competitiveness, insisting that the continent must move beyond exporting raw materials.
He said Africa must begin processing its minerals locally, refining crude oil domestically, and manufacturing products such as pharmaceuticals in order to achieve sustainable economic growth and industrial transformation.
The President also used the summit to promote Nigeria’s blue economy strategy as a catalyst for regional integration and economic expansion across Africa’s maritime corridor.
“Interoperable systems, harmonised laws, and seamless joint enforcement must become operational realities,” Tinubu said.
“Secure sea lanes, predictable regulations, and functional courts remain essential to unlocking private sector investments in Africa’s maritime economy.”
Tinubu pledged to make Nigeria’s Deep Blue Project maritime intelligence infrastructure available as a regional data hub for countries within the Gulf of Guinea.
He added that Nigeria would continue pursuing climate-aligned port modernisation and digital transformation within the maritime sector.
The President further urged African nations to move “from sea blindness to ocean sovereignty” through stronger maritime cooperation and improved security coordination.
On migration, Tinubu said African governments and international development partners must focus on tackling the underlying economic conditions driving irregular migration across the continent.
“People with jobs, security, and hope rarely risk dangerous migration journeys across borders,” he said.
He called for increased investments in infrastructure, agriculture, energy access, digital skills development, and job creation, while also urging development partners to allocate more resources toward programmes designed to reduce migration pressures.
Last year, the United Nations Economic Commission for Africa estimated that Africa loses about $40 billion annually to illicit financial flows from the extractive sector — funds that could otherwise support infrastructure, healthcare, education, and employment generation.
Deputy Executive Secretary of the commission, Antonio Pedro, warned that such financial leakages are not merely accounting irregularities, but reflect Africa’s longstanding dependence on raw material exports, a colonial-era economic structure that continues to limit value creation and deepen inequality across the continent.
Boluwatife Enome
