By Our Reporter
President Bola Tinubu has defended his administration’s borrowing plans amid criticism from opposition leaders, saying loans secured from international institutions and banks are intended to finance infrastructure projects that will expand economic opportunities for future generations.
The President argued that the focus should be on the value generated from borrowed funds rather than the amount borrowed, insisting that investments in infrastructure would strengthen Nigeria’s productive capacity, create jobs and stimulate long-term economic growth.
In an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” Tinubu said projects such as the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of commercial ports in Lagos were central to the country’s economic transformation.
“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.
According to the President, 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.
Tinubu projected that the Lagos-Calabar Coastal Highway could reduce logistics costs along its corridor by 15 to 20 per cent and contribute up to two per cent to Nigeria’s gross domestic product through increased trade, tourism and industrial activities.
He added that the project was 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,” the President 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 said.
The President also cited improvements in selected economic indicators as evidence of progress under his administration’s reforms, stating that 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 from 20.98 per cent a year earlier.
He further disclosed that gross external reserves stood at $55.1 billion as of October 9, 2026, including about $46 billion in net reserves, while the tax-to-GDP ratio rose to 12.5 per cent from seven per cent.
Tinubu attributed the reported improvements to measures introduced since May 2023, including the removal of petrol subsidies, exchange rate unification, tax reforms and coordinated efforts to tackle inflation.
He said the reforms, though 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 also argued that improved international investor confidence was creating opportunities for Nigeria to attract long-term capital and finance critical infrastructure 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.
He cited positive assessments by international credit rating agencies as evidence of improved confidence in the economy, saying such assessments could help Nigeria attract institutional investors, secure longer-term financing and reduce borrowing costs.
Tinubu said his administration was shifting public borrowing away from short-term fiscal pressures towards investments expected to generate economic returns, create employment and expand opportunities for future generations.
He added that the government was pursuing longer-term financing arrangements that would match the lifespan of infrastructure assets, ease refinancing pressures and secure more competitive funding for productive investments.
Outlining priorities for the next phase of the Federal Executive Council’s economic strategy, the President identified food affordability and energy price stability; budget harmonisation and fiscal discipline; completion of high-impact projects; improved economic policy and regulatory efficiency; and targeted household support alongside investment in human development.
He stressed that the success of the government’s economic programmes would be measured by completed projects, increased investment, job creation and improved living standards.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” Tinubu said.
He maintained that responsible borrowing, backed by productive investments and effective project delivery, would be critical to translating renewed international confidence into lasting economic benefits for Nigerians.
