President Bola Tinubu has defended his administration’s borrowing from international financial institutions and banks, arguing that the loans are necessary to finance critical infrastructure, create employment opportunities and accelerate Nigeria’s economic growth.
The president said government borrowing should not be judged solely by the amount of money borrowed but by the economic value, infrastructure and opportunities created through the investments.
Tinubu made the position known in an essay titled, “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” scheduled for publication on Nigerian news platforms.
Responding to criticism from opposition leaders and other Nigerians over the government’s increasing reliance on loans, the president maintained that borrowing could be justified when the funds are directed towards productive investments capable of generating long-term economic benefits.
“The real question is not how much we borrow, but what we build, what value we create, and what future we leave behind,” he wrote.
Tinubu identified several major infrastructure projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of major commercial ports in Lagos, as key investments expected to strengthen Nigeria’s productive capacity.
According to him, the Lagos-Calabar Coastal Highway is projected to reduce logistics costs along its corridor by between 15 and 20 per cent, while potentially contributing up to two per cent to the country’s Gross Domestic Product through increased trade, tourism and industrial activities.
The project is also expected to generate approximately 100,000 direct employment opportunities in construction and engineering, alongside more than 150,000 indirect jobs in logistics, building materials and related sectors.
The president explained that the infrastructure programme, combined with investments in healthcare, education and vocational training, would improve connectivity between economic regions, reduce transportation costs, unlock agricultural and industrial opportunities and attract private-sector investment.
“We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” Tinubu stated.
He argued that Nigeria’s ambition to become a $1 trillion economy by 2030 would require sustained investment in infrastructure to support industrialisation, higher productivity and international trade.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he said.
Tinubu further attributed improvements in some economic indicators and growing international investor confidence to the reforms introduced by his administration since May 2023.
He said the measures, including the removal of petrol subsidies, exchange rate unification, tax reforms and coordinated efforts to control inflation, had helped strengthen public finances, restore macroeconomic stability and improve Nigeria’s position in international financial markets.
The president disclosed that Nigeria’s 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, compared with 20.98 per cent recorded during the corresponding period a year earlier.
He also stated that the country’s gross external reserves increased to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves. He added that Nigeria’s tax-to-GDP ratio had improved to 12.5 per cent from seven per cent.
“The decisions taken since 2023 were difficult but necessary,” he said.
According to Tinubu, the improvements have strengthened Nigeria’s capacity to attract foreign investment and secure financing for projects that support sustainable economic development.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he added.
The president also pointed to positive assessments by international credit rating agencies as evidence of improved confidence in Nigeria’s economic management.
He maintained that such assessments were independent evaluations reflecting stronger external reserves, improved economic management and greater financial credibility rather than political endorsements.
Tinubu said the improved international standing could help Nigeria attract institutional investors, access longer-term financing and reduce the cost of borrowing.
He explained that his administration was shifting public borrowing away from financing immediate fiscal pressures towards investments capable of generating economic returns, creating employment and expanding opportunities for future generations.
The government, he added, was pursuing longer-term financing arrangements that would correspond with the lifespan of infrastructure projects, reduce refinancing pressures and secure more competitive funding for productive investments.
Looking ahead, Tinubu outlined five major priorities for the next phase of the Federal Executive Council’s economic strategy.
These include improving food affordability and energy price stability, strengthening budget harmonisation and fiscal discipline, completing high-impact infrastructure projects, improving economic policies and regulatory efficiency, and expanding targeted household support alongside investments in human development.
He stressed that the success of his administration’s economic policies would ultimately be determined by the completion of projects, increased investments, employment generation and improvements in the living standards of Nigerians.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” the president stated.
Tinubu reiterated that Nigeria’s economic ambitions must be backed by responsible borrowing, effective project implementation and investments capable of delivering lasting benefits to citizens and future generations.
