Tinubu defends borrowing, says infrastructure will drive $1trn economy

President Bola Tinubu has defended his administration’s borrowing plans, saying loans secured from international institutions and banks will fund infrastructure projects expected to boost economic growth and create jobs.

Tinubu said Nigeria’s borrowing should be assessed by the value generated from the investments, rather than the amount borrowed.

“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 said in an essay titled From reforms to delivery: Our infrastructure investment and growth strategy.

In the essay, which is expected to be published on Nigerian news platforms, Tinubu listed the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and modernisation of commercial ports in Lagos among projects expected to strengthen the economy.

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.

According to the President, 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.

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He added that the project was projected to generate 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,” he said.

Tinubu said achieving his administration’s target of building a $1 trillion economy by 2030 would require sustained infrastructure investment 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.

Defending the administration’s economic reforms introduced in May 2023, the President said measures including the removal of petrol subsidy, exchange rate unification and tax reforms had helped improve macroeconomic stability and strengthen public finances.

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, from 20.98 per cent a year earlier.

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

According to him, the improved economic indicators and positive assessments by international credit rating agencies have strengthened investor confidence and created opportunities for Nigeria to attract long-term financing.

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

The President argued that stronger investor confidence could help the country attract institutional investors, secure longer-term financing and reduce borrowing costs.

He said the administration was shifting public borrowing away from meeting short-term fiscal pressures towards investments expected to generate economic returns, create jobs and expand opportunities for future generations.

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

He 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 major projects and investment in critical infrastructure; improved economic policies and regulatory efficiency; and targeted household support alongside investment in human development.

The President said the administration’s economic performance would ultimately be judged by completed projects, increased investment, job creation 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 added that Nigeria’s economic ambition must be backed by responsible borrowing and investments capable of delivering lasting benefits to citizens.