President Bola Tinubu has defended his administration’s borrowing plans, arguing that loans used to finance productive infrastructure can expand economic opportunities, create jobs and improve living standards for future generations.
The President made the case in an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” in response to criticism, particularly from opposition leaders, over Nigeria’s borrowing from international institutions and financial markets.
Tinubu said the focus should not be solely on how much the country borrows, but on what the borrowed funds are used to build and the economic value they generate.
“The real question is not how much we borrow, but what we build, what value we create and what future we leave behind,” the President said.
He identified major infrastructure projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of commercial ports in Lagos, as key components of the administration’s economic growth strategy.
According to Tinubu, these investments are expected to connect economic regions, reduce transportation and logistics costs, strengthen trade and unlock Nigeria’s agricultural and industrial potential.
He said investments in healthcare, education and vocational training would complement infrastructure development by improving human capital and expanding employment opportunities.
On the Lagos-Calabar Coastal Highway, the President said projections indicate that the project could reduce logistics costs along its corridor by between 15 and 20 per cent and contribute up to two per cent to Nigeria’s gross domestic product through increased trade, tourism and industrial activity.
The project is also projected to generate approximately 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, building materials and related services.
Tinubu said the government was not simply constructing roads but developing economic corridors capable of connecting markets, encouraging industrial activity and changing the country’s economic landscape.
The President linked the infrastructure programme to his administration’s ambition to build a one-trillion-dollar economy by 2030.
He argued that achieving the target would require sustained investment in transportation, electricity, industrial development and other infrastructure needed to support a larger and more productive economy.
Turning to economic performance, Tinubu cited improvements in key indicators as evidence that the government’s reforms were creating conditions for increased investment.
He stated 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, compared with 20.98 per cent a year earlier.
The President also said Nigeria’s gross external reserves rose to 55.1 billion dollars as of October 9, 2026, including approximately 46 billion dollars in net reserves.
He further stated that the country’s tax-to-GDP ratio increased to 12.5 per cent from seven per cent.
Tinubu attributed these developments to reforms introduced since May 2023, including the removal of petrol subsidies, exchange-rate unification, tax reforms and measures aimed at controlling inflation.
He acknowledged that the decisions had been difficult but maintained that they were necessary to strengthen public finances and improve the economy’s long-term prospects.
The President also pointed to assessments by international credit-rating agencies and other financial institutions as signs of improving investor confidence.
According to him, stronger external reserves and improved macroeconomic management could help Nigeria attract institutional investors, secure longer-term financing and reduce borrowing costs.
He said the administration was seeking to shift public borrowing away from meeting short-term fiscal pressures towards investments capable of generating economic returns.
Tinubu added that longer-term financing arrangements would help match loan repayment periods with the useful life of infrastructure projects, reduce refinancing pressures and support more sustainable project funding.
However, the ultimate test, he said, would be whether the financing translated into completed projects, employment opportunities and tangible improvements in the lives of Nigerians.
The President outlined five priorities for the next phase of the Federal Executive Council’s economic strategy.
These include 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.
Tinubu maintained that the government’s economic programme would be judged by its ability to deliver measurable results rather than by the amount of financing secured.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” he said.
The President’s defence comes amid continuing public debate over Nigeria’s debt burden, the cost of servicing loans and whether major infrastructure investments will deliver sufficient economic benefits to justify their financial commitments.
Ultimately, the sustainability of the borrowing strategy will depend on transparent project execution, prudent debt management, the economic returns generated by completed infrastructure and the extent to which ordinary Nigerians experience improved living conditions.
