President Bola Tinubu has defended his administration’s borrowing plans, arguing that loans secured from international institutions and banks are intended to finance critical infrastructure, stimulate economic growth and create opportunities for future generations.
In an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” the President said the debate over public borrowing should focus on the value generated by investments rather than the amount borrowed.
“The real question is not how much we borrow, but what we build, what value we create and what future we leave behind,” Tinubu said.
The essay, released by the State House, comes amid criticism from opposition leaders over the Federal Government’s borrowing activities.
Tinubu 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 the President, 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, 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,” he said.
Tinubu 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.
The President attributed improvements in key economic indicators to reforms introduced since May 2023, including the removal of petrol subsidies, exchange rate unification, tax reforms and measures to contain inflation.
He said Nigeria’s 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.
Tinubu also disclosed 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.
According to him, the reforms, although difficult, had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
“The decisions taken since 2023 were difficult but necessary,” he said.
The President further argued that growing investor confidence and positive assessments by international credit rating agencies had improved Nigeria’s prospects for attracting long-term investment and securing more competitive financing.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
He added that the administration was redirecting public borrowing from short-term fiscal pressures towards investments expected to generate economic returns, create jobs and expand opportunities for future generations.
Tinubu said the government was also pursuing longer-term financing arrangements that would match the lifespan of infrastructure assets, reduce refinancing pressures and secure more favourable funding terms for productive investments.
He outlined five priorities for the next phase of the Federal Executive Council’s economic strategy: improving food affordability and energy price stability; strengthening budget harmonisation and 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 investments in human development.
The President stressed that the success of the administration’s economic policies would ultimately be measured by completed projects, increased investment, employment generation 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.
He maintained that responsible borrowing, backed by productive investments and effective project delivery, would be essential to translating Nigeria’s economic ambitions into lasting benefits for citizens and future generations.
