President Bola Tinubu has defended his administration’s borrowing plans, saying loans secured from international financial institutions and banks are intended to finance critical infrastructure, stimulate economic growth and create opportunities for future generations.
The President argued that the success of government borrowing should be assessed by the value it creates, the projects it delivers and its long-term benefits to Nigerians, rather than the amount borrowed.
Tinubu stated this in an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” in which he outlined his administration’s infrastructure agenda and responded to criticism, particularly from opposition leaders, over the country’s borrowing.
“The real question is not how much we borrow, but what we build, what value we create and what future we leave behind,” he said.
The President identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and modernisation of key commercial ports in Lagos as major projects expected to strengthen Nigeria’s productive capacity.
He said the projects, alongside investments in healthcare, education and vocational training, would connect economic regions, reduce logistics costs, unlock agricultural and industrial potential, and attract private investment.
According to him, the Lagos-Calabar Coastal Highway is projected to reduce logistics costs along its corridor by 15 to 20 per cent and potentially contribute up to two per cent to the country’s Gross Domestic Product through increased trade, tourism and industrial activity.
The project is also expected to generate about 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs in logistics, materials supply and related services.
“We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” Tinubu said.
He maintained that achieving his administration’s ambition of building a $1 trillion economy by 2030 would require sustained investment in infrastructure to support productivity, industrialisation and trade.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he added.
Tinubu said the economic reforms introduced by his administration since May 2023 had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
Citing recent economic indicators, the President said real GDP growth reached 4.43 per cent in the second quarter of 2026, while headline inflation declined to 14.63 per cent in September from 20.98 per cent in the corresponding period of the previous year.
He added that gross external reserves rose to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves, while the country’s tax-to-GDP ratio increased to 12.5 per cent from seven per cent.
The President attributed the improvements to measures such as the removal of petrol subsidies, unification of the exchange rate, tax reforms and coordinated efforts to tackle inflation.
“The decisions taken since 2023 were difficult but necessary,” he said.
According to Tinubu, the reforms have strengthened Nigeria’s capacity to attract investment and finance projects that support long-term economic growth.
He also said improving international investor confidence had helped reduce the country’s borrowing costs and risk premium.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
The President cited positive assessments by international credit rating agencies as evidence of growing confidence in Nigeria’s economic management, noting that such assessments reflected improvements in external reserves, macroeconomic management and financial credibility.
He said the improved standing could help the country attract more institutional investors, secure longer-term financing and reduce borrowing costs.
Tinubu explained that his administration was shifting public borrowing away from financing short-term fiscal pressures towards investments capable of generating economic returns, creating jobs and expanding opportunities for future generations.
He added that the government was pursuing longer-term financing arrangements to match the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding for productive investments.
The President said Nigeria must translate renewed international confidence into capital expenditure, completed infrastructure projects and lasting economic benefits for citizens.
He outlined five priorities for the next phase of the Federal Executive Council’s economic strategy: improving food affordability and energy price stability; harmonising budgets and strengthening fiscal discipline; completing high-impact projects and investing in critical infrastructure; improving the economic policy framework and regulatory efficiency; and providing targeted household support alongside investment in human development.
Tinubu stressed that the success of his administration’s economic policies would ultimately be measured by completed projects, increased investment, job creation and improved living standards.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” he said.
The President reiterated that Nigeria’s economic ambitions must be underpinned by responsible borrowing and investments that deliver sustainable benefits to citizens and create lasting opportunities for future generations.
