President Bola Tinubu has defended his administration’s borrowing plans, arguing that loans needs to be assessed by the infrastructure they ship, the financial worth they create and their long-term advantages to Nigerians.
In an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” revealed on October 29, 2026, Tinubu responded to criticism of the federal government’s proposed exterior borrowing, linking infrastructure improvement to his ambition of constructing 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,” the President stated.
Tinubu hyperlinks infrastructure to progress goal
Tinubu recognized the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electrical energy grid upgrades and modernisation of main business ports in Lagos as key initiatives anticipated to strengthen Nigeria’s productive capability.
He stated the initiatives, alongside investments in healthcare, training and vocational coaching, would enhance connectivity, decrease logistics prices, broaden financial exercise and appeal to personal funding.
- The Lagos-Calabar Coastal Highway, specifically, is projected to cut back logistics prices alongside its hall by 15% to 20% and probably add up to 2% to Nigeria’s GDP by elevated commerce, tourism and industrial exercise.
The challenge can be anticipated to generate about 100,000 direct jobs in building and engineering, alongside greater than 150,000 oblique jobs in logistics, supplies and associated providers.
- “We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” Tinubu stated.
He argued that attaining a $1 trillion economy by 2030 would require sustained funding in infrastructure to assist productiveness, industrialisation and commerce.
- “We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he stated.
Tinubu cites financial indicators
The President stated reforms launched since May 2023, together with petrol subsidy elimination, alternate charge unification and tax reforms, had helped strengthen public funds, restore macroeconomic stability and enhance investor confidence.
- He cited actual GDP progress of 4.43% within the second quarter of 2026 and a decline in headline inflation to 14.63% in September, from 20.98% a yr earlier.
Tinubu additionally stated gross exterior reserves stood at $55.1 billion as of October 9, 2026, together with roughly $46 billion in web reserves. The tax-to-GDP ratio, he added, had elevated to 12.5% from 7%.
- “The decisions taken since 2023 were difficult but necessary,” he stated.
According to Tinubu, stronger financial indicators and optimistic assessments by worldwide credit standing companies have improved Nigeria’s standing in monetary markets, probably serving to the nation appeal to institutional traders, acquire longer-term financing and cut back borrowing prices.
- “Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he stated.
He added that the federal government was shifting borrowing away from short-term fiscal pressures in direction of investments anticipated to generate financial returns, create jobs and broaden alternatives. The administration can be pursuing longer-term financing preparations that higher match the lifespan of infrastructure property and cut back refinancing pressures.
Senate borrowing plan attracts scrutiny
Tinubu’s defence of borrowing comes amid renewed scrutiny of the federal government’s proposed exterior financing.
- Earlier within the week, the President sought Senate approval for a supplementary exterior borrowing plan of $20.52 billion and €1.05 billion for 2026–2027. The proposed funds are supposed to assist infrastructure and improvement initiatives throughout the nation.
Former Vice President Atiku Abubakar has referred to as on the President to publish detailed, project-by-project info on how the proposed borrowing could be spent.
The debate comes towards the backdrop of Nigeria’s rising public debt. Data from the Debt Management Office confirmed that complete public debt elevated to N166.79 trillion as of June 30, 2026, from N159.35 trillion on the finish of March.
