Tinubu defends $21.7 billion loans, says Nigeria needs infrastructure to reach $1 trillion economy

President Bola Tinubu has defended his administration’s borrowing plans, arguing that loans should be assessed by the infrastructure they deliver, the economic value they create and their long-term benefits to Nigerians.

In an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” published on October 29, 2026, Tinubu responded to criticism of the government’s proposed external borrowing, linking infrastructure development to his ambition of building a $1 trillion economy by 2030.

“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.

Tinubu links infrastructure to growth target

Tinubu identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and modernisation of major commercial ports in Lagos as key projects expected to strengthen Nigeria’s productive capacity.

He said the projects, alongside investments in healthcare, education and vocational training, would improve connectivity, lower logistics costs, expand economic activity and attract private investment.

• The Lagos-Calabar Coastal Highway, in particular, is projected to reduce logistics costs along its corridor by 15% to 20% and potentially add up to 2% 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 and related services.

• “We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” Tinubu said.

He argued that achieving a $1 trillion economy by 2030 would require sustained investment in infrastructure to support productivity, industrialisation and trade.

• “We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he said.

Tinubu cites economic indicators

The President said reforms introduced since May 2023, including petrol subsidy removal, exchange rate unification and tax reforms, had helped strengthen public finances, restore macroeconomic stability and improve investor confidence.

• He cited real GDP growth of 4.43% in the second quarter of 2026 and a decline in headline inflation to 14.63% in September, from 20.98% a year earlier.

Tinubu also said gross external reserves stood at $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves. The tax-to-GDP ratio, he added, had increased to 12.5% from 7%.

• “The decisions taken since 2023 were difficult but necessary,” he said.

According to Tinubu, stronger economic indicators and positive assessments by international credit rating agencies have improved Nigeria’s standing in financial markets, potentially helping the country attract institutional investors, obtain longer-term financing and reduce borrowing costs.

• “Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.

He added that the government was shifting borrowing away from short-term fiscal pressures towards investments expected to generate economic returns, create jobs and expand opportunities. The administration is also pursuing longer-term financing arrangements that better match the lifespan of infrastructure assets and reduce refinancing pressures.

Senate borrowing plan draws scrutiny

Tinubu’s defence of borrowing comes amid renewed scrutiny of the government’s proposed external financing.

• Earlier in the week, the President sought Senate approval for a supplementary external borrowing plan of $20.52 billion and €1.05 billion for 2026–2027. The proposed funds are intended to support infrastructure and development projects across the country.

Former Vice President Atiku Abubakar has called on the President to publish detailed, project-by-project information on how the proposed borrowing would be spent.

The debate comes against the backdrop of Nigeria’s rising public debt. Data from the Debt Management Office showed that total public debt increased to N166.79 trillion as of June 30, 2026, from N159.35 trillion at the end of March.