Amid debt criticism, Tinubu defends fresh loans, unveils $1trn growth strategy

President Bola Tinubu has defended his administration’s growing reliance on foreign loans, insisting that borrowing should be judged by the infrastructure delivered, economic value created and opportunities generated for future generations.

Responding to mounting criticism, particularly from opposition figures, over Nigeria’s recent borrowing from international financial institutions and commercial lenders, Tinubu said the focus should shift from the volume of loans to how effectively borrowed funds are deployed.

“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 in an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” scheduled for publication on Nigerian news platforms.

His defence comes amid continuing public debate over the country’s debt profile, borrowing obligations and the capacity of the economy to translate government expenditure into tangible improvements in living standards.

Tinubu argued that Nigeria’s ambition to become a $1 trillion economy by 2030 would remain difficult to achieve without substantial investment in infrastructure capable of supporting industrialisation, trade and higher productivity.

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

The President identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and modernisation of major commercial ports in Lagos as critical components of the administration’s infrastructure programme.

According to him, the projects are expected to improve connectivity between economic regions, reduce transportation and logistics costs, unlock agricultural and industrial opportunities and attract private sector investment.

Tinubu said the Lagos-Calabar Coastal Highway, in particular, could reduce logistics costs along its corridor by between 15 and 20 per cent and contribute as much as two per cent to Nigeria’s Gross Domestic Product through increased trade, tourism and industrial activities.

He projected that the highway would generate approximately 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect employment opportunities across logistics, building materials 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.

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Beyond road construction, the President said investments in electricity, healthcare, education and vocational training would be necessary to strengthen the country’s productive capacity and ensure that infrastructure expansion translates into broader economic benefits.

To reinforce his argument for sustained infrastructure spending, Tinubu pointed to what he described as improvements in key macroeconomic indicators following the economic reforms introduced by his administration in May 2023.

He disclosed that Nigeria recorded real GDP growth of 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 during the corresponding period a year earlier.

The President also said the country’s gross external reserves rose to $55.1 billion as of October 9, 2026, with net reserves accounting for approximately $46 billion.

He further disclosed that Nigeria’s tax-to-GDP ratio increased to 12.5 per cent from seven per cent.

Tinubu attributed these developments to policy measures, including the removal of petrol subsidies, unification of the foreign exchange market, tax reforms and coordinated efforts to moderate inflation.

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

He argued that the reforms had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.

However, the President’s defence of the reforms comes against the backdrop of continuing concerns over the cost of living, household purchasing power and the extent to which improvements in headline economic indicators are being experienced by ordinary Nigerians.

Government banking on improved investor confidence

Tinubu also cited improved assessments by international credit rating agencies and growing investor confidence as indications that Nigeria’s economic position was changing.

According to him, stronger external reserves, improved macroeconomic management and increased financial credibility have created opportunities for the country to attract institutional investors, secure longer-term financing and reduce borrowing costs.

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

The President maintained that international assessments of Nigeria’s economy were not political endorsements but independent evaluations by rating agencies, index providers, regulators and investors.

He said the improved standing would enable the country to mobilise capital for infrastructure and other productive investments under more competitive financing arrangements.

Tinubu also explained that his administration was changing the focus of public borrowing from meeting immediate fiscal pressures to financing projects capable of generating economic returns, creating jobs and expanding opportunities.

He said the government was pursuing longer-term financing structures that would align repayment obligations with the useful lifespan of infrastructure assets, thereby reducing refinancing pressures and improving the sustainability of public investments.

READ ALSO; Tinubu seeks fresh $21.7bn foreign loans amid concerns over debt sustainability

Five priorities for next phase of economic strategy

Looking ahead, the President outlined five priorities for the next phase of the Federal Executive Council’s economic strategy.

They include improving food affordability and stabilising energy prices; harmonising budgets and strengthening fiscal discipline; completing high-impact projects and investing in critical infrastructure; improving the economic policy framework and regulatory efficiency; and providing targeted household support alongside investments in human development.

He stressed that the administration’s economic performance should ultimately be assessed through completed projects, increased private investment, employment generation and improvements in citizens’ living standards.

For Tinubu, the central argument is that borrowing should not be treated as an economic achievement in itself but as a financing instrument whose value depends on the returns it generates.

“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” he said.

The President maintained that Nigeria’s economic ambitions must be underpinned by responsible borrowing, effective project execution and investments capable of delivering sustainable benefits to present and future generations.