POLITICS
Tinubu Defends Fresh Borrowing, Says Loans Will Fund Infrastructure, Jobs
Tinubu Defends Fresh Borrowing, Says Loans Will Fund Infrastructure, Jobs
President says Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, power upgrades and port modernisation will drive economic growth.
Tinubu projects 100,000 direct jobs and more than 150,000 indirect jobs from Lagos-Calabar Coastal Highway.
President cites 4.43 per cent GDP growth, declining inflation and $55.1bn external reserves as evidence of improving economic conditions.
FG targets a $1tr economy by 2030, pledges responsible borrowing and long-term investments to reduce financing pressures.
October 29, () – President Bola Tinubu has defended his administration’s borrowing plans amid criticism from opposition leaders, insisting that loans obtained from international institutions and banks will finance critical infrastructure, create jobs and expand economic opportunities for future generations.
The President said borrowing should be assessed by the value of the projects financed, the economic returns they generate and their long-term benefits to citizens, rather than the amount borrowed alone.
Tinubu stated this in an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy”, scheduled for publication on Nigerian news platforms, according to a statement issued on Thursday by his Special Adviser on Information and Strategy, Bayo Onanuga.
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“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.
Channel
Infrastructure Investment To Drive Growth
Tinubu identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of key commercial ports in Lagos as major projects expected to strengthen Nigeria’s productive capacity.
He said the projects, alongside investments in healthcare, education and vocational training, would improve connectivity between economic regions, reduce logistics costs, unlock agricultural and industrial potential and attract private investment.
The President maintained that sustained infrastructure investment was necessary to support his administration’s ambition of growing Nigeria into a $1 trillion economy by 2030.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size”, he said.
He added that the country must expand its infrastructure to accommodate higher productivity, industrialisation, trade and the growing demands of a larger economy.
Coastal Highway To Generate 250,000 Jobs
Lagos Calabar Coastal Highway
Tinubu projected that the Lagos-Calabar Coastal Highway 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 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 services.
“We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” the President said.
He said the infrastructure projects would help connect markets, facilitate the movement of goods and services and create opportunities for businesses across different regions of the country.
Tinubu added that investments in healthcare, education and vocational training would complement physical infrastructure by strengthening human capital and improving the capacity of Nigerians to participate in economic activities.
Tinubu Cites Economic Indicators, Investor Confidence
The President attributed improvements in key economic indicators to reforms introduced by his administration since May 2023, including the removal of the petrol subsidy, foreign exchange market unification, tax reforms and coordinated measures to address inflation.
“The decisions taken since 2023 were difficult but necessary,” he said.
According to Tinubu, Nigeria’s 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 from 20.98 per cent a year earlier.
He also disclosed that gross external reserves rose to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves.
The President further said Nigeria’s tax-to-GDP ratio had increased to 12.5 percent from seven percent.
Tinubu said the improvements had strengthened Nigeria’s ability to attract investment and access financing for projects expected to support long-term economic growth.
He cited positive assessments by international credit rating agencies and other global financial institutions as evidence of improved confidence in the country’s economic management.
“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 stated.
The President said improved investor confidence could help Nigeria attract more 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 added.
FG Targets Long-Term Financing, Fiscal Discipline
Tinubu said his administration was shifting public borrowing away from financing short-term fiscal pressures towards investments expected to generate economic returns, create employment and expand opportunities for future generations.
He also disclosed that the government was pursuing longer-term financing arrangements to align repayment obligations with the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding for productive investments.
The President said Nigeria must translate renewed international confidence into capital expenditure, completed infrastructure and lasting economic benefits for citizens.
He identified five priorities for the next phase of the Federal Executive Council’s economic strategy: food affordability and energy price stability; budget harmonisation and fiscal discipline; completion of high-impact projects and investment in critical infrastructure; an improved economic policy framework and regulatory efficiency; and targeted household support alongside investment in human development.
According to him, the priorities are intended to ensure that economic reforms deliver measurable benefits to households and businesses while strengthening the foundations for sustained growth.
Project Delivery To Determine Success
Tinubu said the success of his administration’s economic policies would be measured by completed projects, increased investment, employment generation 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 maintained that Nigeria’s economic ambition must be supported by responsible borrowing and investments capable of generating lasting returns.
His defence of the borrowing strategy comes amid criticism from opposition leaders over the Federal Government’s reliance on loans to finance infrastructure and meet spending obligations.
Tinubu said the government would focus on ensuring that borrowed funds translate into productive assets, stronger economic activity and expanded opportunities for Nigerians.
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