President Bola Tinubu has argued in defense of more borrowing to finance public infrastructure, citing Nigeria’s 4.43 per cent economic growth, declining inflation and $55.1 billion in external reserves.
Tinubu maintained that investments in critical infrastructure will drive productivity, create jobs and support the country’s ambition of becoming a $1 trillion economy by 2030.
He, however, said the ultimate test of the government’s borrowing plans would be whether the funds translate into completed projects, increased economic activity and improved living standards for Nigerians.
The President stated this in an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” where he maintained that public borrowing should increasingly finance productive assets rather than short-term fiscal pressures.
The essay was disclosed in a statement issued on Thursday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga.
“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.
According to the President, Nigeria’s real Gross Domestic Product grew by 4.43 per cent in the second quarter of 2026, while headline inflation declined to 14.63 per cent in September from 20.98 per cent a year earlier.
He also reported that gross external reserves reached $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves. The country’s tax-to-GDP ratio, he added, had risen to 12.5 per cent from seven per cent.
Tinubu attributed the reported improvements to economic reforms introduced since May 2023, including petrol subsidy removal, exchange rate unification, tax reforms and measures to contain inflation.
He said the reforms had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
“The decisions taken since 2023 were difficult but necessary,” he said.
Infrastructure spending at the centre of borrowing strategy
Defending the administration’s investment priorities, Tinubu 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 expand Nigeria’s productive capacity.
He said the projects, alongside investments in healthcare, education and vocational training, would improve connectivity between economic regions, reduce logistics costs, unlock agricultural and industrial opportunities and attract private investment.
The President 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 GDP through increased trade, tourism and industrial activity.
The project is also expected to generate about 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, materials supply and related sectors.
“We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” he said.
Tinubu argued that the country’s ambition of building a $1 trillion economy by 2030 would require sustained investment in infrastructure capable of supporting industrialisation, higher productivity and expanded 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 improvements in economic indicators and assessments by international credit rating agencies had strengthened investor confidence and created opportunities for Nigeria to attract long-term capital.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
He maintained that stronger external reserves, improved macroeconomic management and greater financial credibility could help Nigeria secure longer-term financing on more competitive terms.
Tinubu also said the government was pursuing financing arrangements that better align debt repayment periods with the lifespan of infrastructure assets, with the aim of reducing refinancing pressures.
The strategy, he argued, would enable Nigeria to channel more resources into projects capable of generating economic returns over several years.
Delivery remains the critical test
Despite the administration’s defence of its borrowing plans, Tinubu acknowledged that securing financing alone would not constitute success, stressing that the government must demonstrate tangible results through completed infrastructure, job creation and improvements in living standards.
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 said the administration’s performance would ultimately be judged by its ability to translate financing and policy reforms into measurable economic benefits for citizens.
“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 responsible borrowing, supported by effective project execution and productive investments, would be essential to creating lasting economic opportunities for future generations.
