The Independent Media and Policy Initiative (IMPI) has defended the borrowing policy of President Bola Tinubu’s administration, insisting that debt financing remains necessary to bridge Nigeria’s massive infrastructure deficit.
In a policy statement signed by its Chairman, Dr Omoniyi Akinsiju, the think tank argued that the country requires a minimum annual infrastructure investment of $14.2 billion over the next 10 years to achieve meaningful development.
According to IMPI, Nigeria’s infrastructure challenges are too extensive to be addressed solely through annual budgetary allocations without resorting to borrowing.
The group cited estimates from international organisations, including the World Bank, African Development Bank (AfDB), International Finance Corporation (IFC), and KPMG, on Nigeria’s infrastructure deficit.
It noted that while the World Bank estimated Nigeria would need up to $3 trillion over 30 years to close its infrastructure gap, KPMG projected that spending $14.2 billion annually for 10 years, totalling $142 billion, was the most realistic target under Nigeria’s current revenue realities.
IMPI stated that sustained investment in transportation, power, and digital infrastructure would stimulate economic growth, create jobs, improve road networks, boost air transport safety, and support the digital economy.
The think tank also noted that previous administrations consistently recorded low budget implementation rates and inadequate capital expenditure for infrastructure development.
However, it commended the Tinubu administration for what it described as a record-breaking fiscal commitment to infrastructure in the 2026 Appropriation Act.
According to the group, the federal government allocated about $23 billion to infrastructure and capital projects in the 2026 budget, surpassing KPMG’s recommended annual spending benchmark for the first time in Nigeria’s fiscal history.
IMPI added that the infrastructure allocation was roughly equivalent to the budget deficit, which would largely be financed through borrowing, describing the move as a significant shift toward debt-backed infrastructure development.