President Bola Ahmed Tinubu has defended his administration’s borrowing from international institutions and banks, arguing that Nigeria should assess loans by the infrastructure they deliver, the economic value they create, and the opportunities they provide for future generations.
Tinubu said his government was shifting public borrowing away from financing short-term fiscal pressures towards investments capable of expanding the economy, creating jobs and improving living standards.
In an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” the President responded to criticism of the country’s rising borrowing, particularly from opposition leaders, insisting that the focus should be on the productive use of borrowed funds.
“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.
The President identified major infrastructure projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of key commercial ports in Lagos, as critical to strengthening Nigeria’s productive capacity.
He said investments in infrastructure, healthcare, education and vocational training would improve connectivity between economic regions, reduce logistics costs, unlock agricultural and industrial potential and attract private-sector investment.
According to Tinubu, the Lagos-Calabar Coastal Highway is 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.
The project is also expected to generate about 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, building materials and related sectors.
“We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries, and reshaping Nigeria’s economic geography,” he said.
The President 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.
Tinubu argued that Nigeria must convert improving economic indicators and growing international investor confidence into long-term financing for critical infrastructure and other productive investments.
He said the economic reforms introduced by his administration in May 2023 had helped restore macroeconomic stability, strengthen public finances and improve the country’s standing in international financial markets.
Citing economic indicators, the President 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.
He also reported that gross external reserves rose to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves.
Tinubu added that Nigeria’s tax-to-GDP ratio had increased to 12.5 per cent from seven per cent.
He attributed the reported improvements to policies including the removal of the petrol subsidy, exchange rate unification, tax reforms and coordinated efforts to tackle inflation.
“The decisions taken since 2023 were difficult but necessary,” he said.
Tinubu said the economic reforms had strengthened Nigeria’s capacity to attract investment and finance projects with long-term growth potential.
He cited assessments by international credit rating agencies and other financial institutions as evidence of improving confidence in the country’s economic management.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
According to the President, improved international standing could help Nigeria attract more institutional investors, secure longer-term financing and reduce borrowing costs.
He said the government was pursuing financing arrangements that better match the lifespan of infrastructure assets, thereby reducing refinancing pressures and securing more competitive funding for productive investments.
Tinubu maintained that borrowing should translate into completed projects, employment opportunities and economic benefits rather than merely provide funds for government expenditure.
“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,” he said.
The President identified five priorities for the next phase of the Federal Executive Council’s economic strategy, aimed at translating the reported gains from reforms into tangible improvements for Nigerians.
They include food affordability and energy price stability; budget harmonisation and fiscal discipline; completion of high-impact projects and investment in critical infrastructure; improved economic policy and regulatory efficiency; and targeted household support alongside investment in human development.
He said the government must focus on converting international confidence into capital expenditure, completed infrastructure and lasting economic benefits for citizens.
Tinubu stressed that the success of the administration’s economic policies would ultimately 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,” he said.
The President added that Nigeria’s economic ambitions must be backed by responsible borrowing and investments that create sustainable opportunities for future generations.
