By Our Reporter
President Bola Tinubu has defended his administration’s borrowing plans, insisting that loans secured from international institutions and banks are intended to finance infrastructure and productive investments that will expand economic opportunities for Nigerians and future generations.
The President, who responded to criticisms of the country’s rising borrowing by opposition leaders and other Nigerians, said the critical issue was not how much the country borrowed but the value generated from the investments.
In an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy”, Tinubu argued that responsible borrowing should be assessed by the projects delivered, economic value created and opportunities provided for future generations.
“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 key commercial ports in Lagos as major infrastructure 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 him, the Lagos-Calabar Coastal Highway is expected to reduce logistics costs along its corridor by between 15 and 20 per cent and could contribute up to two per cent to the country’s Gross Domestic Product (GDP) through expanded trade, tourism and industrial activities.
The project is also projected 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,” Tinubu said.
He maintained that the administration’s ambition to build a $1 trillion economy by 2030 would require sustained investment in infrastructure to support higher 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.
Tinubu said the economic reforms introduced by his administration in May 2023 had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
Citing economic indicators, the President said 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 recorded a year earlier.
He also disclosed that the country’s gross external reserves rose to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves, while the tax-to-GDP ratio increased from seven per cent to 12.5 per cent.
He attributed the reported improvements to measures such as the removal of petrol subsidy, exchange rate unification, tax reforms and coordinated efforts to tackle inflation.
“The decisions taken since 2023 were difficult but necessary,” he said.
The President argued that the improvements had strengthened Nigeria’s capacity to attract investment and finance critical infrastructure, adding that growing international investor confidence could help the country secure longer-term funding at more favourable 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, stressing that the assessments were based on economic indicators rather than political considerations.
“These are not political endorsements; they are independent assessments by global rating agencies, index providers, regulators and investors, recognising stronger external reserves, improved macroeconomic management and greater financial credibility,” Tinubu stated.
According to him, the improved standing could enable Nigeria to attract more institutional investors, secure longer-term financing and reduce borrowing costs.
The President said his administration was shifting public borrowing away from financing short-term fiscal pressures towards investments capable of generating economic returns, creating jobs and expanding opportunities for future generations.
He added that the government was pursuing longer-term financing arrangements that would match the lifespan of infrastructure assets, reduce refinancing pressures and provide more competitive funding for productive investments.
Tinubu stressed the need to translate renewed international confidence into capital expenditure, completed infrastructure and tangible economic benefits for Nigerians.
He outlined five priorities for the next phase of the Federal Executive Council’s economic strategy: food affordability and energy price stability; budget harmonisation and fiscal discipline; completion of high-impact projects and investment in critical infrastructure; improved economic policy framework and regulatory efficiency; and targeted household support alongside investment in human development.
The President said the success of the administration’s economic programmes 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 Nigeria’s economic ambition must be underpinned by responsible borrowing and investments that would deliver lasting benefits to citizens and create opportunities for future generations.
