Tinubu defends borrowing, says loans will fund infrastructure, create jobs
by Moronfolu Adeyemi · The Eagle OnlinePresident Bola Tinubu has defended Nigeria’s borrowing from international institutions and banks, insisting that the funds will finance infrastructure projects, create jobs and expand economic opportunities for future generations.
Tinubu stated this in an essay titled “From reforms to delivery: Our infrastructure investment and growth strategy,” published by his spokesman, Bayo Onanuga, on X on Thursday.
Responding to criticism of the government’s borrowing, particularly from opposition leaders, the President argued that the focus should be on how the funds are used and the economic value they generate.
“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.
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 connect economic regions, reduce logistics costs, unlock agricultural and industrial potential and attract private investment.
According to the President, the Lagos-Calabar Coastal Highway is expected to reduce logistics costs along its corridor by 15 to 20 per cent and could contribute up to two per cent to Nigeria’s gross domestic product (GDP) through increased trade, tourism and industrial activity.
The project is also projected 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 linked the infrastructure programme to his administration’s ambition to build a $1tn economy by 2030, arguing that the country would need modern infrastructure to support such expansion.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he stated.
The President said economic reforms introduced in May 2023 had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
He cited real GDP growth of 4.43 per cent in the second quarter of 2026, while headline inflation fell to 14.63 per cent in September from 20.98 per cent a year earlier.
Tinubu also said Nigeria’s gross external reserves stood at $55.1bn as of October 9, 2026, including about $46bn in net reserves, while the tax-to-GDP ratio had risen to 12.5 per cent from seven per cent.
He described the policy measures introduced since assuming office, including petrol subsidy removal, exchange rate unification, tax reforms and coordinated efforts to tackle inflation, as difficult but necessary.
“The decisions taken since 2023 were difficult but necessary,” he said.
Tinubu added that improving economic indicators and growing international investor confidence were creating opportunities for Nigeria to attract long-term investment.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
He also cited assessments by international credit rating agencies as evidence of improved investor confidence, linking them to stronger external reserves and improved economic management.
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“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.
The President said his administration was shifting public borrowing away from financing short-term fiscal pressures towards investments expected to generate economic returns, create jobs and provide lasting benefits.
He added that the government was pursuing longer-term financing arrangements that would match the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding.
Tinubu said the next phase of the Federal Executive Council’s economic strategy would focus on five priorities: 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.
He maintained that Nigeria needed to translate renewed international confidence into completed projects, increased investment and tangible improvements in citizens’ living standards.
“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 the country’s economic ambitions must be backed by responsible borrowing and investments capable of creating lasting opportunities for future generations.
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