Tinubu defends fresh loans, says Nigeria must borrow to build $1trn economy

• Projects 250,000 jobs from Lagos-Calabar highway

From Juliana Taiwo-Obalonye, Abuja

President Bola Tinubu has defended his administration’s borrowing plans amid criticism from opposition leaders, insisting that loans secured by Nigeria must translate into infrastructure, jobs and economic opportunities for future generations.

The President said Nigeria could not achieve its ambition of becoming a $1 trillion economy by 2030 without sustained investment in critical infrastructure, arguing that the country must borrow responsibly to finance projects capable of expanding its productive capacity.

In an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy”, released by the State House on Thursday, Tinubu said the debate over borrowing should focus on the value generated from the funds rather than the amount borrowed alone.

“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 investments expected to drive economic growth.

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.

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 (GDP) through expanded trade, tourism and industrial activity.

The project is also expected 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,” he said.

Defending the administration’s infrastructure drive, Tinubu argued that Nigeria’s existing infrastructure could not adequately support the scale of economic expansion envisaged under his $1 trillion economy target.

“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he said.

The President linked the infrastructure investment plan to what he described as improving economic fundamentals and renewed international investor confidence, which he said were creating opportunities for Nigeria to secure long-term financing on better terms.

According to him, the economic reforms introduced since May 2023, including petrol subsidy removal, exchange rate unification, tax reforms and measures to tackle inflation, had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.

Tinubu cited real GDP growth of 4.43 per cent in the second quarter of 2026 and a decline in headline inflation to 14.63 per cent in September from 20.98 per cent a year earlier as evidence of the progress recorded.

He also said gross external reserves had risen to $55.1 billion as of October 9, 2026, including about $46 billion in net reserves, while the tax-to-GDP ratio had increased from seven per cent to 12.5 per cent.

“The decisions taken since 2023 were difficult but necessary,” he said.

On the cost of borrowing, the President said improved economic indicators and positive assessments by international credit rating agencies had strengthened the country’s financial credibility.

“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.

He described the assessments by global rating agencies, index providers, regulators and investors as independent recognition of stronger external reserves and improved macroeconomic management, rather than political endorsements.

Tinubu said the improved standing could help Nigeria attract more institutional investors, secure longer-term financing and reduce borrowing costs.

He maintained that his administration was shifting public borrowing away from meeting short-term fiscal pressures towards investments expected to generate economic returns, create employment and expand opportunities for future generations.

The government, he added, was pursuing longer-term financing arrangements that would match the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding for productive investments.

Outlining the next phase of the Federal Executive Council’s economic strategy, Tinubu listed five priorities: 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 country must convert renewed international confidence into capital expenditure, completed infrastructure and tangible benefits for citizens.

The President, however, acknowledged that the ultimate test of the administration’s economic policies would not be the volume of financing secured but the projects completed, jobs created, investments attracted and improvements in Nigerians’ 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 stressed that Nigeria’s economic ambitions must be underpinned by responsible borrowing and investments that deliver lasting benefits to present and future generations.

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