Tinubu Defends Borrowing, Says Loans Will Build Assets for Future Generations
President Bola Tinubu has defended his administration’s borrowing plans, arguing that the value of loans should be measured by the infrastructure, jobs and economic opportunities they create for present and future generations.
The President said his administration was directing public borrowing towards productive investments capable of strengthening Nigeria’s economic capacity and supporting its ambition of building a $1 trillion economy by 2030.
Tinubu’s position was contained in an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” highlighted in a statement issued on Thursday by his Special Adviser on Information and Strategy, Bayo Onanuga.
Responding to criticisms of the government’s borrowing plans, particularly from opposition leaders, Tinubu said the focus should be on the economic value generated by borrowed funds rather than the amount alone.
“The real question is not how much we borrow, but what we build, what value we create and what future we leave behind,” he said.
The President identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of key commercial ports in Lagos as major infrastructure projects expected to expand Nigeria’s productive capacity.
He said 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.
Tinubu 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 activity.
According to him, the highway project is 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,” the President said.
He argued that Nigeria’s ambition of becoming a $1 trillion economy required sustained investment in infrastructure capable of supporting higher 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.
Tinubu stressed that the economic target would not be achieved through declarations alone but through investments that expand productive activities and deliver lasting benefits.
Explaining his administration’s financing strategy, the President said borrowing was being redirected from meeting short-term fiscal pressures towards 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 that match the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding for productive investments.
The President also said economic reforms introduced since May 2023 had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
He cited 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 further stated that Nigeria’s gross external reserves had risen to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves, while the country’s tax-to-GDP ratio had increased from seven per cent to 12.5 per cent.
He attributed the reported improvements to the removal of petrol subsidies, exchange rate unification, tax reforms and coordinated measures to tackle inflation.
“The decisions taken since 2023 were difficult but necessary,” he said.
According to Tinubu, the reforms had strengthened Nigeria’s ability to attract investment and secure financing for projects designed to support long-term economic growth.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
The President also cited positive assessments by international credit rating agencies as evidence of improved investor confidence, arguing that Nigeria’s stronger standing could help attract institutional investors, secure longer-term financing and lower borrowing costs.
“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,” he said.
Tinubu maintained that the government must translate renewed international confidence into capital expenditure, completed infrastructure projects and tangible benefits for Nigerians.
He outlined five priorities for the next phase of the Federal Executive Council’s economic strategy. They include food affordability and energy price stability; budget harmonisation and fiscal discipline; completion of high-impact projects and investment in critical infrastructure; an improved economic policy framework and regulatory efficiency; and targeted household support alongside investment in human development.
The President said his administration’s economic programmes would ultimately be judged by completed projects, increased investment, employment generation 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.