President Bola Tinubu has justified his administration’s reliance on foreign loans, arguing that substantial investment in infrastructure is necessary to grow Nigeria’s economy to $1 trillion by 2030.
The President maintained that borrowing should be assessed based on the economic benefits it delivers rather than the volume of debt accumulated.
His position was contained in an essay titled, ‘From reforms to delivery: Our infrastructure investment and growth strategy’, released on Thursday by his Special Adviser on Information and Strategy, Bayo Onanuga.
The comments come against the backdrop of growing concerns over Nigeria’s rising debt profile and the government’s continued borrowing from international lenders.
Tinubu listed major infrastructure projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid expansion and the rehabilitation of commercial ports in Lagos, as critical investments for expanding the economy.
According to him, the projects are expected to improve transportation networks, reduce the cost of moving goods, boost agricultural and industrial production and encourage private sector investment.
“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.
He projected that the Lagos-Calabar Coastal Highway could cut logistics expenses along its route by between 15 and 20 per cent and add as much as two per cent to the country’s Gross Domestic Product through increased commercial activities, tourism and industrial development.
The project is also expected to provide approximately 100,000 direct jobs in construction and engineering, with more than 150,000 additional indirect employment opportunities 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.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size.”
The President also pointed to improvements in economic indicators since his administration introduced major policy changes in May 2023, including the removal of petrol subsidies, unification of foreign exchange rates and tax reforms.
He said Nigeria recorded a 4.43 per cent real GDP growth in the second quarter of 2026, while inflation dropped to 14.63 per cent in September from 20.98 per cent recorded during the corresponding period last year.
Tinubu further disclosed that the country’s gross external reserves climbed to $55.1bn as of October 9, 2026, with net reserves accounting for approximately $46bn.
He added that Nigeria’s tax-to-GDP ratio had improved from seven per cent to 12.5 per cent.
The President said the reforms had strengthened the country’s public finances, improved economic stability and enhanced its credibility among international investors.
“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 also referenced favourable reviews from international credit rating agencies, describing them as independent indications of improved investor confidence and better economic management.
“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.
Tinubu argued that the improved economic outlook would position Nigeria to attract more institutional investors, access long-term funding and obtain loans at more favourable interest rates.
He explained that his administration was redirecting public borrowing towards projects capable of generating economic returns, creating employment and providing sustainable benefits rather than using loans mainly to address immediate government spending needs.
The President also highlighted plans to secure long-term financing for infrastructure projects to align repayment periods with the useful lifespan of the assets and minimise refinancing risks.
Outlining the Federal Government’s priorities for the next phase of its economic strategy, Tinubu identified five key areas: making food affordable and stabilising energy prices; ensuring budget harmonisation and fiscal discipline; completing major infrastructure projects; improving economic policies and regulatory efficiency; and providing targeted household support while investing in human capital development.
He said the success of the administration’s economic policies would ultimately depend on their impact on Nigerians through completed infrastructure, employment opportunities, increased investments and improved living conditions.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” Tinubu said.
He maintained that Nigeria’s ambition of becoming a $1 trillion economy must be backed by prudent borrowing and investments capable of delivering long-term economic benefits.
