President Bola Tinubu has defended his administration’s borrowing strategy, insisting that loans secured by the Federal Government are increasingly being directed towards productive infrastructure investments rather than recurrent expenditure or short-term fiscal needs.
Tinubu said Nigeria must borrow to build roads, railways, ports and power infrastructure capable of expanding economic opportunities, generating employment and supporting the country’s ambition of becoming a $1 trillion economy by 2030.
The President made the argument in an article titled, “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” in which he explained the rationale behind his administration’s economic policies and growing emphasis on capital investment.
He maintained that the objective of public borrowing was changing from financing immediate fiscal pressures to creating productive assets that would generate economic value over several decades.
According to him, every naira and dollar borrowed must be channelled into assets capable of generating sufficient economic returns to justify the financial obligations incurred.
“This is how Nigeria will reach the objective of a USD 1 trillion economy by 2030: not through consumption, but through investment in the infrastructure that makes growth possible,” he said.
Tinubu argued that the country could not achieve such an ambitious economic target with infrastructure designed for an economy a fraction of its projected size.
He said the administration’s decision to remove petrol subsidy, unify the foreign exchange market, modernise the tax framework and coordinate efforts to tackle inflation had helped restore macroeconomic stability and strengthen government revenue.
Citing economic indicators, the President said Nigeria’s real Gross Domestic Product growth reached 4.43 per cent in the second quarter of 2026, compared with 2.74 per cent in 2023, while growth in the first half of the year stood at 4.2 per cent.
He added that headline inflation declined to 14.63 per cent in September 2026 from 20.98 per cent in the corresponding period of the previous year, although food inflation remained elevated at 19.59 per cent.
The President also disclosed that gross external reserves rose to $55.1bn as of October 9, 2026, including approximately $46bn in net reserves, which he described as an 18-year high.
He said the naira exchanged at N1,333 to the dollar at the Nigerian Foreign Exchange Market, with the spread between official market rates and other market segments below five per cent.
Tinubu further said the country’s tax-to-GDP ratio had increased to 12.5 per cent from seven per cent, while net Federation Account Allocation Committee distributions rose by 44 per cent, from N15.2tn in 2024 to N21.9tn in 2025.
Nigeria, he added, recorded a trade surplus of N20.1tn in the first half of 2026, almost double the N10.2tn recorded during the corresponding period of 2025.
The President said these developments had strengthened the country’s fiscal position and improved its capacity to finance long-term infrastructure projects.
However, he acknowledged the need for fiscal discipline, noting that public debt stood at 35.75 per cent of GDP in the second quarter of 2026, while debt servicing accounted for approximately 65 per cent of government revenue in the first half of the year.
He said the administration was therefore committed to avoiding deficit monetisation and unfunded spending commitments, particularly during the pre-election period.
Tinubu listed some of the major infrastructure projects expected to drive the investment strategy to include the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, improvements to the electricity sector and national grid, and upgrades to major commercial ports in Lagos.
He said the projects, alongside investments in railways, healthcare, education and vocational training, would connect economic regions, unlock agricultural and industrial potential, reduce logistics costs and attract private investment.
On the Lagos-Calabar Coastal Highway, the President cited progress reported as of August 2026, saying Lot 2 was more than 80 per cent complete, while construction works on the Calabar-Akwa Ibom section had exceeded 30 per cent completion.
He said the projects were expected to generate substantial employment opportunities, both during construction and through the economic activities they would stimulate along their corridors.
According to Tinubu, the Lagos-Calabar Coastal Highway alone is projected to create approximately 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, materials supply and related services.
He added that the highway could reduce logistics costs along its corridor by between 15 and 20 per cent and contribute as much as two per cent to Nigeria’s GDP through increased industrial activity, trade and tourism.
The President said the economic benefits of infrastructure extended beyond the physical structures, explaining that roads, railways, ports and electricity infrastructure would collectively improve productivity, facilitate trade and strengthen the country’s competitiveness.
“We are building more than highways. We are opening economic corridors, connecting markets, supporting industries and reshaping Nigeria’s economic geography,” he said.
Tinubu also said the Federal Government was extending the maturity profile of public debt by moving away from short-term borrowing towards longer-term financing arrangements that better matched the lifespan of infrastructure assets.
He argued that infrastructure expected to serve the country for 40 years should not be financed entirely through short-term loans.
The President added that the Monetary Policy Rate was reduced by 350 basis points, from 26.5 per cent to 23 per cent, on September 22, 2026, although lending rates remained above 30 per cent.
He said securing longer-tenor financing at more competitive rates was essential to sustaining infrastructure investment without undermining fiscal stability.
Tinubu insisted that the administration’s borrowing strategy was designed to create lasting economic value, adding that the cost of failing to invest in critical infrastructure could be greater than the cost of responsible borrowing.
“We are not borrowing against our children’s future. We must invest responsibly to expand opportunities available to them,” he said.