President Tinubu defends foreign borrowing, saying highways, power upgrades and port modernisation are essential to building a $1tn economy by 2030.
President Bola Tinubu has defended his administration’s reliance on foreign loans, arguing that sustained investment in infrastructure is necessary for Nigeria to become a $1 trillion economy by 2030.
In an essay titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, published by his spokesman, Bayo Onanuga, on Thursday, October 29, Tinubu said the value generated from borrowed funds should matter more 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.
His defence comes as the Federal Government seeks legislative approval for a supplementary external borrowing plan worth $20.52bn and €1.045bn, equivalent to about $21.7bn. The proposed financing is intended to support projects across infrastructure, agriculture, healthcare, education, water supply and other sectors.
The borrowing request has renewed debate over Nigeria’s growing debt burden, the transparency of public spending and whether government-funded projects will deliver measurable economic benefits.
Tinubu names highways, power and ports as growth drivers
Tinubu identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of major commercial ports in Lagos as key projects expected to strengthen the economy.
He said the investments, alongside spending on healthcare, education and vocational training, would connect economic regions, reduce the cost of moving goods, expand agricultural and industrial production and attract private investment.
“We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” he said.
The president said 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 gross domestic product through increased trade, tourism and industrial activity.
He also projected that the highway would create about 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs in logistics, materials and related industries.
Tinubu argued that Nigeria’s infrastructure must match its economic ambitions.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he said.
The projected economic contribution and employment figures are government estimates; their eventual impact will depend on project completion, usage and the wider economic conditions.
President cites economic gains from reforms
Tinubu attributed improvements in economic indicators to reforms introduced since he took office in May 2023, including the removal of petrol subsidies, exchange rate unification, tax reforms and measures to curb inflation.
He said Nigeria’s real GDP grew by 4.43 per cent year-on-year in the second quarter of 2026, while headline inflation fell to 14.63 per cent in September from 20.98 per cent a year earlier. The National Bureau of Statistics’ figures support the reported GDP growth and September inflation rate.
The president also said gross external reserves stood at $55.1bn on October 9, including about $46bn in net reserves, while the tax-to-GDP ratio had risen to 12.5 per cent from seven per cent.
He argued that the reforms had improved public finances, restored macroeconomic stability and strengthened Nigeria’s position in international financial markets.
“The decisions taken since 2023 were difficult but necessary. Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” Tinubu said.
He cited assessments by international credit rating agencies and other financial institutions as evidence of stronger investor confidence, adding that improved credibility could help Nigeria secure longer-term financing at lower 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.
Fresh borrowing raises questions about debt sustainability
Tinubu said his administration was shifting public borrowing away from short-term fiscal pressures towards investments expected to generate economic returns, create jobs and expand opportunities for future generations.
He added that the government was pursuing longer-term financing arrangements that match the lifespan of infrastructure assets, with the aim of reducing refinancing pressures and securing more competitive funding.
However, the proposed external borrowing plan has drawn scrutiny from critics who want the government to provide clearer details about the projects, costs, financing terms and expected returns. BusinessDay reported that Nigeria’s public debt reached ₦166.79tn at the end of June 2026, underscoring the scale of its existing obligations. <Cite refs={[“turn633951search10″,”turn633951search2”]}/>
The president said the next phase of the government’s economic strategy would prioritise food affordability and energy price stability, fiscal discipline, completion of high-impact infrastructure, regulatory efficiency and targeted household support alongside investment in human development.
He said the administration’s performance should ultimately be judged by what it delivers to Nigerians, rather than the financing it secures.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” Tinubu said.
He added that responsible borrowing must be matched by investments that create lasting opportunities for future generations.
