President Bola Tinubu has defended Nigeria’s growing external borrowing, insisting that loans obtained from international financial institutions and banks are necessary to finance critical infrastructure and accelerate economic growth.
The President said the focus should not be on how much the country borrows but on the value such loans create through completed projects, job opportunities and improved living standards.
Tinubu stated this in an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” in which he outlined his administration’s infrastructure development plans and economic ambitions.
He identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and modernisation of key commercial ports in Lagos as major projects expected to strengthen Nigeria’s productive capacity.
According to him, the projects, alongside investments in healthcare, education and vocational training, will connect economic regions, reduce transportation and logistics costs, unlock agricultural and industrial opportunities and attract private investment.
The President projected that the Lagos-Calabar Coastal Highway could reduce logistics costs along its corridor by 15 to 20 per cent and contribute up to two per cent to Nigeria’s Gross Domestic Product through increased trade, tourism and industrial activities.
He added that the project was expected to generate about 100,000 direct jobs in construction and engineering, as well as over 150,000 indirect jobs in logistics, materials and related services.
Tinubu maintained that achieving his administration’s ambition of building a one-trillion-dollar economy by 2030 would require sustained investment in infrastructure, higher productivity, industrialisation and trade.
He argued that Nigeria could not achieve such economic growth with infrastructure designed for a much smaller economy.
The President also attributed improvements in key economic indicators to reforms introduced by his administration in May 2023, including the removal of petrol subsidy, exchange rate unification, tax reforms and measures to tackle inflation.
He said Nigeria’s gross external reserves rose to 55.1 billion dollars as of October 9, 2026, including about 46 billion dollars in net reserves, while the tax-to-GDP ratio increased to 12.5 per cent from seven per cent.
Tinubu further disclosed that the economy recorded a 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 recorded a year earlier.
He said the improved economic indicators and positive assessments by international credit rating agencies had strengthened investor confidence and positioned Nigeria to attract long-term financing at more competitive rates.
The President explained that his administration was shifting public borrowing away from short-term fiscal pressures towards productive investments capable of generating economic returns, creating employment and expanding opportunities for future generations.
He added that the government was pursuing longer-term financing arrangements to match the lifespan of infrastructure projects, reduce refinancing pressures and secure more favourable funding conditions.
Tinubu also outlined 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 policies and regulatory efficiency; and targeted household support alongside investment in human development.
He stressed that the success of the administration’s economic reforms would be measured by completed projects, increased investment, job creation and improved living standards.
The President maintained that securing loans alone was not an achievement, stressing that the ultimate measure of success would be the completion of projects and the delivery of tangible benefits to Nigerians.
