President Bola Tinubu has defended his administration's borrowing plans, emphasizing that the value of investments financed with borrowed funds is more important than the amount borrowed. In an essay titled "From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy," Tinubu responded to criticism from opposition leaders over loans obtained from international institutions and banks. He argued that the focus should be on what the country builds and the economic value it creates.
Tinubu identified key projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades, and modernization of major commercial ports in Lagos. These investments, along with spending on healthcare, education, and vocational training, aim to connect economic regions, reduce logistics costs, improve agricultural and industrial output, and attract private investment. The President's Special Adviser on Information and Strategy, Bayo Onanuga, issued a statement highlighting these projects.
The Lagos-Calabar Coastal Highway is expected to reduce logistics costs along its route by 15 to 20 percent and contribute up to two percent to Nigeria's gross domestic product through increased trade, tourism, and industrial activity. The project is also projected to generate about 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, materials, and related services. Tinubu emphasized that the investments are not just building highways but opening economic corridors, connecting markets, unlocking industries, and reshaping Nigeria's economic geography.
Tinubu linked the administration's ambition of building a $1 trillion economy by 2030 to infrastructure development. He stated that achieving this goal would require sustained investment in infrastructure to support productivity, industrialization, and trade. The President noted that Nigeria's infrastructure must be designed to support a larger economy, and economic growth and improvements in Nigeria's financial standing could help attract long-term investments needed to expand critical infrastructure.
Tinubu attributed progress to reforms introduced since May 2023, including the removal of petrol subsidies, exchange rate unification, tax reforms, and measures to tackle inflation. He cited economic indicators, such as Nigeria's real GDP growth of 4.43 percent in the second quarter of 2026, and a decline in headline inflation to 14.63 percent in September from 20.98 percent a year earlier. Additionally, gross external reserves stood at $55.1 billion as of October 9.
The President reported that Nigeria's tax-to-GDP ratio had risen to 12.5 percent from seven percent, and assessments by international credit rating agencies point to improved confidence in Nigeria's economy. Tinubu argued that stronger reserves, improved macroeconomic management, and greater financial credibility could help Nigeria attract institutional investors, secure longer-term financing, and lower borrowing costs. He emphasized that the administration is moving public borrowing towards investments expected to generate economic returns, create jobs, and provide opportunities for future generations.
Tinubu outlined five priorities for the next phase of the Federal Executive Council's economic strategy, including food affordability and energy price stability, budget harmonization and fiscal discipline, and completion of major projects and investment in critical infrastructure. The success of the administration's economic policies will be measured by completed projects, increased investment, employment generation, and improved living standards. Tinubu emphasized that securing financing is not an achievement, but completing projects, delivering value, and improving the lives of Nigerians is.
Key points
- President Tinubu defends Nigeria's borrowing plans, citing future benefits from infrastructure investments.
- The administration aims to build a $1 trillion economy by 2030 through sustained investment in infrastructure.
- Tinubu outlines five priorities for the next phase of the Federal Executive Council's economic strategy.
