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President Bola Tinubu has defended his administration’s borrowing plans, saying funds secured from international institutions and banks will be channelled into infrastructure and other productive investments to expand economic opportunities for future generations.
The president said Nigeria’s borrowing should be assessed by the economic value generated from the projects financed, rather than the amount of loans obtained.
Mr Tinubu stated this in an essay titled, “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” issued by his Special Adviser on Information and Strategy, Bayo Onanuga, on Thursday.
The president’s defence comes amid criticism from opposition leaders over the government’s borrowing and the country’s growing debt obligations.
“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.
Mr Tinubu identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of key commercial ports in Lagos as major projects expected to strengthen Nigeria’s productive capacity.
He said the investments, alongside spending on 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 between 15 and 20 per cent and potentially contribute up to two per cent to Nigeria’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,” the president said.
Mr Tinubu argued that Nigeria could not achieve his administration’s ambition of building a $1 trillion economy by 2030 without substantial investment in infrastructure.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he said.
Tinubu cites economic indicators
The president said the economic reforms introduced since May 2023 had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
He cited the removal of the petrol subsidy, the unification of the foreign exchange market, tax reforms and measures to tackle inflation as key steps taken by his administration.
According to Mr Tinubu, 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.
He also said gross external reserves rose to $55.1bn as of October 9, including about $46bn in net reserves, while the country’s tax-to-GDP ratio increased to 12.5 per cent from seven per cent.
“The decisions taken since 2023 were difficult but necessary,” he said.
Mr Tinubu maintained that the reported improvements had strengthened the country’s capacity to attract investment and finance infrastructure projects capable of generating long-term economic returns.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
The president also cited positive assessments by international credit rating agencies as evidence of improved investor confidence, saying the assessments reflected stronger external reserves, improved macroeconomic management and greater financial credibility.
He argued that the improved standing would help Nigeria attract institutional investors, secure longer-term financing and reduce borrowing costs.
Government shifts borrowing focus
Mr Tinubu said his administration was shifting public borrowing away from financing immediate fiscal pressures towards investments expected to generate economic returns, create jobs and improve living standards.
He said the government was also pursuing longer-term financing arrangements that would match the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding for productive investments.
According to him, the objective is to convert renewed international confidence into capital expenditure, completed infrastructure and tangible economic benefits for Nigerians.
However, the president said securing financing alone would not amount to success, stressing that the ultimate test would be the completion of projects and their impact on citizens.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” he said.
Five priorities for economic growth
Tinubu outlined five priorities for the next phase of the Federal Executive Council’s economic strategy.
They include improving food affordability and maintaining 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 these priorities were intended to ensure that economic reforms translated into higher productivity, increased investment, employment generation and improved living standards.
The president maintained that the administration’s target of a $1 trillion economy by 2030 would depend on sustained investment, industrialisation, trade expansion and improved infrastructure.
He said responsible borrowing must remain central to the strategy, with financing directed towards projects capable of delivering lasting economic benefits.
The administration, he added, would be judged not merely by the loans it secures or the reforms it announces, but by the infrastructure completed, businesses supported, jobs created and opportunities available to future generations.
