TINUBU DEFENDS FOREIGN LOANS, SAYS LOANS WILL FUND INFRASTRUCTURE
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By ‘Balogun Ibrahim
President Bola Tinubu has defended Nigeria’s recent borrowing from international financial institutions and banks, arguing that the loans will finance critical infrastructure and create economic opportunities for future generations.
In an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” published by his spokesman, Bayo Onanuga, on X on Thursday, Tinubu responded to criticism of the government’s borrowing plans, particularly from opposition figures.
“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 identified major infrastructure projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of key commercial ports in Lagos, as investments expected to strengthen Nigeria’s productive capacity.
He said the projects, alongside investments in healthcare, education and vocational training, would connect economic regions, reduce transportation costs, unlock agricultural and industrial potential, and attract private investment.
According to the President, the Lagos-Calabar Coastal Highway is projected to reduce logistics costs along its route 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 create approximately 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs in logistics, building materials and related sectors.
“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 investments to his administration’s ambition to grow Nigeria’s economy to $1 trillion by 2030.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he added.
The President maintained that 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 economic indicators, including real GDP growth of 4.43 per cent in the second quarter of 2026 and a decline in headline inflation to 14.63 per cent in September, compared with 20.98 per cent a year earlier.
Tinubu also disclosed that Nigeria’s gross external reserves had risen to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves. He added that the country’s tax-to-GDP ratio had increased to 12.5 per cent from seven per cent.
“The decisions taken since 2023 were difficult but necessary,” he said, referring to the removal of petrol subsidies, exchange rate unification, tax reforms and measures to control inflation.
Tinubu argued that improving economic indicators and rising investor confidence were creating opportunities for Nigeria to attract long-term investments.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he stated.
He cited favourable assessments by international credit rating agencies 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,” the President said.
According to Tinubu, his administration is shifting public borrowing away from meeting short-term fiscal needs towards financing investments capable of generating economic returns, creating jobs and expanding opportunities for future generations.
He added that the government was pursuing longer-term financing arrangements to match repayment periods with the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding terms.
The President said Nigeria must translate renewed international confidence into capital expenditure, completed infrastructure projects and sustainable economic benefits for citizens.
He outlined five priorities for the next phase of the Federal Executive Council’s economic strategy: ensuring food affordability and energy price stability; promoting budget harmonisation and fiscal discipline; completing high-impact projects and investing in critical infrastructure; improving economic policies and regulatory efficiency; and providing targeted household support while investing in human development.
Tinubu maintained that the success of the administration’s economic policies would ultimately be measured by completed projects, increased investment, job creation and improvements in living standards.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” he said.
He stressed that Nigeria’s economic ambitions must be backed by responsible borrowing and investments that deliver lasting benefits to citizens and future generations.
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