Amid Loan Criticism, Tinubu Defends Borrowing for Infrastructure, Economic Growth

By Nafiu Muhammad Lema

President Bola Tinubu has defended his administration’s borrowing plans, insisting that loans secured by Nigeria must be channelled into productive investments capable of stimulating economic growth and creating opportunities for future generations.

Tinubu argued that the value of government borrowing should be assessed based on the infrastructure delivered, economic opportunities created and long-term benefits to citizens, 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,” the President said.

He made the remarks in an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” issued on Thursday by his Special Adviser on Information and Strategy, Bayo Onanuga.

The President’s defence comes amid criticism from opposition leaders over Nigeria’s recent borrowing from international institutions and banks.

Tinubu identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of major commercial ports in Lagos as key projects expected to strengthen the country’s productive capacity.

According to him, 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.

He 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 activities.

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,” Tinubu said.

The President maintained that achieving his administration’s ambition of building a $1 trillion economy by 2030 would require sustained investments in infrastructure to support 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.

Tinubu also cited improvements in key economic indicators as evidence that the reforms introduced by his administration since May 2023 were beginning to strengthen the economy and restore investor confidence.

He said 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 in the corresponding period of the previous year.

According to him, gross external reserves rose to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves, while the country’s tax-to-GDP ratio increased from seven per cent to 12.5 per cent.

The President attributed the developments to policy measures including the removal of petrol subsidies, exchange rate unification, tax reforms and coordinated efforts to tackle inflation.

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

He added that improved economic indicators and positive assessments by international credit rating agencies had strengthened Nigeria’s ability to attract long-term investment and access financing at more favourable rates.

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

According to him, the assessments by international rating agencies, index providers, regulators and investors reflect improvements in external reserves, macroeconomic management and the country’s financial credibility.

He said the administration was shifting public borrowing away from financing immediate fiscal pressures towards investments expected to generate economic returns, create employment and expand opportunities for Nigerians.

Tinubu also stressed the need for longer-term financing arrangements that correspond with the lifespan of infrastructure assets, noting that such arrangements would reduce refinancing pressures and help secure more competitive funding.

The President 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; improved economic policy and regulatory efficiency; and targeted household support alongside investment in human development.

He said Nigeria must translate renewed international confidence into capital expenditure, completed projects and tangible improvements in citizens’ lives.

“The success of our economic programmes will be measured by completed projects, increased investment, employment generation and improved living standards,” he said.

Tinubu maintained that securing financing alone was not sufficient, stressing that the ultimate objective must be the delivery of infrastructure and lasting economic benefits.

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

The President added that Nigeria’s economic ambitions must be supported by responsible borrowing and investments that create sustainable opportunities for future generations.