President Bola Tinubu has defended his administration’s borrowing plans, arguing that loans secured from international financial institutions and banks should be assessed by the economic value they create, the infrastructure they deliver and the opportunities they generate for future generations.
The President said Nigeria’s borrowing strategy was being redirected towards productive investments capable of expanding the economy, creating jobs, strengthening trade and improving living standards.
Tinubu stated this in an article titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” released by the State House on Thursday.
Responding to criticism, particularly from opposition leaders, over the country’s increasing reliance on external financing, the President said the critical consideration should be how borrowed funds are deployed.
“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.
He identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and modernisation of major commercial ports in Lagos as key projects expected to strengthen Nigeria’s productive capacity.
According to Tinubu, the projects, alongside investments in healthcare, education and vocational training, will connect economic regions, reduce logistics costs, unlock agricultural and industrial potential and attract private-sector investment.
He said 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 Nigeria’s Gross Domestic Product, GDP, through increased trade, tourism and industrial activities.
The project is also expected to generate approximately 100,000 direct jobs in construction and engineering, alongside 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 the ambition to build a $1 trillion economy by 2030 would require sustained investment in infrastructure.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he added.
The President said economic reforms introduced in May 2023 had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
Citing recent indicators, he said real GDP grew by 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 a year earlier.
He added that gross external reserves stood at $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves. The tax-to-GDP ratio had increased to 12.5 per cent from seven per cent.
He attributed the improvements to removal of petrol subsidies, unification of the foreign exchange market, tax reforms and coordinated efforts to curb inflation.
“The decisions taken since 2023 were difficult but necessary,” he said.
Tinubu argued that improvements in economic indicators had strengthened capacity to attract investment and finance long-term growth projects.
He also cited favourable assessments by international credit rating agencies as evidence of growing investor confidence.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
According to him, the assessments reflect improvements in external reserves, macroeconomic management and financial credibility, which could help attract more institutional investors, secure longer-term financing and reduce borrowing costs.
He explained that the administration was shifting public borrowing away from financing immediate fiscal pressures towards investments expected to generate returns, create employment and expand opportunities for future generations.
He added that government was pursuing longer-term financing arrangements that would align repayment periods with the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding.
Tinubu stressed that Nigeria must translate renewed international confidence into capital expenditure, completed projects and tangible benefits for citizens.
He outlined five priorities for the next phase of the Federal Executive Council’s economic strategy: ensuring 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 while investing in human development.
He said success would ultimately be measured by completed projects, increased investment, employment generation and improvements in living standards.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” he said.
