…Promises Long-Term Economic Benefits
President Bola Tinubu has defended his administration’s borrowing plans amid criticism from opposition leaders, arguing that loans should be assessed by the economic value they create rather than the amount borrowed.
Tinubu said the government 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.
In an essay titled “From reforms to delivery: Our infrastructure investment and growth strategy,” the president said Nigeria needed sustained investment in infrastructure to achieve its ambition of becoming a $1 trillion economy by 2030.
“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 statement, issued by Bayo Onanuga, the president’s special adviser on information and strategy, on Thursday, October 29, comes amid ongoing debate over the country’s borrowing and economic reform policies.
Tinubu identified major infrastructure projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway and Trans-Sahara Superhighway, alongside electricity grid upgrades and the modernisation of key commercial ports in Lagos, as investments expected to strengthen Nigeria’s productive capacity.
According to him, the projects would connect economic regions, reduce transportation and logistics costs, unlock agricultural and industrial potential, and attract private investment.
The president said the Lagos-Calabar Coastal Highway alone was 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.
He added that the project was expected to generate about 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs in logistics, 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,” Tinubu said.
He maintained that Nigeria could not achieve its economic ambitions without infrastructure capable of supporting increased production, industrialisation and trade.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he said.
Reforms and economic indicators
Tinubu also defended the economic reforms introduced by his administration in May 2023, including the removal of petrol subsidies, exchange rate unification and tax reforms, saying they had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
He cited economic indicators to support his argument, including 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.
The president further said Nigeria’s gross external reserves had risen to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves.
He also reported that the country’s tax-to-GDP ratio had increased to 12.5 per cent from seven per cent.
“The decisions taken since 2023 were difficult but necessary,” he said.
Tinubu argued that the improvements had strengthened the country’s capacity to attract investment and finance projects intended to support long-term economic growth.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
He also pointed to assessments by international credit rating agencies and other financial institutions as evidence of improving investor confidence.
“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 said.
According to him, the improved standing could help Nigeria attract more institutional investors, secure longer-term financing and reduce borrowing costs.
Government outlines economic priorities
The president said the government was pursuing longer-term financing arrangements to match the repayment structure of infrastructure investments with the lifespan of the assets being developed.
He argued that such arrangements would reduce refinancing pressures and help secure more competitive funding for projects capable of generating lasting economic benefits.
Tinubu also identified 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 maintaining fiscal discipline; completing high-impact projects and investing in critical infrastructure; improving the economic policy framework and regulatory efficiency; and providing targeted household support while investing in human development.
He said the administration must translate renewed international confidence into capital expenditure, completed infrastructure and tangible improvements in the lives of Nigerians.
The president stressed that the success of the government’s economic policies would ultimately depend on their impact on employment, investment and living standards rather than the volume 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.
Tinubu added that responsible borrowing and productive investment would be necessary to ensure that the country’s economic ambitions created lasting opportunities for future generations.
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