By Amofokhai Williams
President Bola Tinubu has defended his administration’s borrowing plans, arguing that loans used to finance productive infrastructure will strengthen Nigeria’s economy, create jobs and expand opportunities for future generations.
The President said the focus should be on the economic value generated by borrowed funds rather than the amount of debt incurred, amid criticism from opposition leaders over the government’s reliance on external financing.
In an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” dated October 29, 2026, Tinubu said Nigeria must ensure that borrowing translates into completed projects, increased productivity and improved living standards.
“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 major commercial ports in Lagos as key projects expected to strengthen the country’s productive capacity.
According to him, the investments, alongside spending on healthcare, education and vocational training, would connect economic regions, reduce transportation costs, unlock agricultural and industrial potential and attract private capital.
Tinubu said the Lagos-Calabar Coastal Highway was 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 through increased trade, tourism and industrial activity.
He added that the project could generate approximately 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs across 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.
He maintained that achieving his administration’s ambition of building a $1 trillion economy by 2030 would require sustained infrastructure investment to support industrialisation, trade and higher productivity.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he said.
Tinubu attributed improvements in key economic indicators to reforms introduced since May 2023, including the removal of the petrol subsidy, exchange rate unification, tax reforms and measures aimed at curbing 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.
The President also reported that gross external reserves stood at $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves. He said the country’s tax-to-GDP ratio had risen to 12.5 per cent from seven per cent.
According to Tinubu, the reforms were beginning to strengthen public finances, restore macroeconomic stability and improve Nigeria’s standing in international financial markets.
“The decisions taken since 2023 were difficult but necessary,” he said.
He also pointed to assessments by international credit rating agencies as evidence of improved investor confidence, arguing that stronger reserves and better macroeconomic management could help Nigeria secure longer-term financing at more competitive rates.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
The President said his administration was seeking to redirect public borrowing away from short-term fiscal pressures towards investments capable of generating economic returns, supporting employment and creating lasting benefits.
He added that the government was pursuing longer-term financing arrangements that would better match the repayment periods of infrastructure assets, reduce refinancing pressures and improve funding conditions for productive projects.
Tinubu 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 economic policy and regulatory efficiency; and providing targeted household support while investing in human development.
He said the success of the administration’s economic programme would ultimately depend on whether Nigerians experienced tangible improvements in employment, investment, infrastructure and 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 maintained that responsible borrowing, backed by productive investments and effective project delivery, would be essential to translating Nigeria’s economic ambitions into sustainable growth and opportunities for future generations.
