Tinubu Defends Foreign Borrowing, Says Loans Must Deliver Infrastructure, Jobs

Tinubu Defends Foreign Borrowing, Says Loans Must Deliver Infrastructure, Jobs

President Bola Ahmed Tinubu has defended his administration’s borrowing from international institutions and banks, saying the focus should be on the value created through infrastructure development, job creation and long-term economic growth.

The President stated this in an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” issued on Thursday, October 29, 2026, in response to criticism, particularly from opposition leaders, over the country’s new loans.

“The real question is not how much we borrow, but what we build, what value we create and what future we leave behind,” Tinubu said.

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, these 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.

Tinubu said 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.

He added that the project is projected to create 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,” the President said.

Tinubu maintained that achieving his administration’s ambition of building a $1 trillion economy by 2030 would require sustained investment in infrastructure to support productivity, industrialisation and trade.

“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he said.

The President said the economic reforms introduced since May 2023, including petrol subsidy removal, exchange rate unification, tax reforms and measures to control inflation, had helped improve macroeconomic stability, strengthen public finances and restore confidence 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.

He also said Nigeria’s gross external reserves rose to $55.1 billion as of October 9, 2026, including about $46 billion in net reserves, while the tax-to-GDP ratio increased from seven per cent to 12.5 per cent.

“The decisions taken since 2023 were difficult but necessary,” Tinubu said, adding that the reforms had strengthened the country’s capacity to attract investment and finance projects that support long-term growth.

He further stated that Nigeria’s improving economic outlook had helped reduce borrowing costs and the country’s risk premium, citing positive assessments by international credit rating agencies and investors.

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

According to the President, stronger investor confidence could help Nigeria attract more institutional investors, secure longer-term financing and reduce borrowing costs.

He said the administration was shifting public borrowing away from short-term fiscal pressures towards investments capable of generating economic returns, creating jobs and expanding opportunities for future generations.

Tinubu added that the government was pursuing longer-term financing arrangements that match the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding for productive investments.

He 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 policy and regulatory efficiency; and targeted household support alongside investment in human development.

The President stressed that the success of the administration’s economic policies would ultimately be measured by completed projects, increased investment, employment generation and improved 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 maintained that Nigeria’s economic ambitions must be backed by responsible borrowing and productive investments that deliver lasting benefits to citizens and future generations.

Tinubu Defends Foreign Borrowing, Says Loans Must Deliver Infrastructure, Jobs