Tinubu: Nigeria Must Borrow to Build Infrastructure, Create Jobs

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

The President made the argument in an essay titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, circulated in a statement by his Special Adviser on Information and Strategy, Bayo Onanuga.

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

He said the projects, alongside investments in healthcare, education and vocational training, would improve connectivity between economic regions, reduce transportation costs, strengthen agriculture and industry, and attract private investment.

According to the President, the Lagos-Calabar Coastal Highway is projected to reduce logistics costs along its corridor by 15 to 20 per cent and could contribute up to two per cent to Nigeria’s gross domestic product through expanded trade, tourism and industrial activity.

He also projected that the highway could generate about 100,000 direct jobs and more than 150,000 indirect jobs.

The figures represent projected benefits rather than independently established outcomes. Their eventual impact will depend on project delivery, economic activity along the corridor and other implementation factors.

Tinubu Defends Proposed External Borrowing

The President’s argument comes as his administration seeks legislative approval for a supplementary external borrowing plan worth approximately $20.52 billion and €1.045 billion.

The proposed facilities are intended to finance projects and programmes across several sectors, including transportation, agriculture, healthcare, education, water supply, security and employment generation.

Tinubu has argued that borrowing to finance productive assets can support long-term growth if the resulting economic benefits justify the cost of financing.

He also said the government was moving towards longer-term financing arrangements that align repayment periods with the useful lives of infrastructure projects, with the aim of reducing refinancing pressures.

The proposal has made the scale, purpose and potential returns of government borrowing a significant issue in the country’s economic debate.

However, legislative approval of a borrowing proposal is different from the actual disbursement of funds, while the economic value of the projects will depend on their completion, costs and performance.

President Cites Economic Indicators

Tinubu also pointed to recent economic indicators as evidence that reforms introduced since May 2023 were producing results.

Nigeria’s real GDP grew by 4.43 per cent year-on-year in the second quarter of 2026, according to the National Bureau of Statistics.

Headline inflation also declined to 14.63 per cent in September from 15.39 per cent in August, although the rate remained higher than the 14.63 per cent recorded in the supplied presidential statement only as a September figure and should be assessed against the corresponding official data release.

The President attributed the broader economic changes to measures including petrol subsidy removal, exchange-rate unification and tax reforms.

He further cited gross external reserves of $55.1 billion as of October 9, 2026, and said the tax-to-GDP ratio had increased to 12.5 per cent from seven per cent.

Tinubu argued that stronger international confidence could help Nigeria attract institutional investors, obtain longer-term financing and reduce borrowing costs.

The economic indicators provide context for the administration’s argument, but they do not independently establish that every proposed infrastructure project will deliver its projected returns.

Five Priorities for Economic Delivery

Tinubu outlined five priorities for the next phase of the Federal Executive Council’s economic strategy.

They include improving food affordability and energy price stability; strengthening budget coordination and fiscal discipline; completing major infrastructure projects; improving economic policy and regulatory efficiency; and providing targeted household support alongside investment in human development.

The President said the administration’s ambition to build a $1 trillion economy by 2030 would require sustained infrastructure investment, higher productivity, industrialisation and increased trade.

He maintained that the success of the government’s economic strategy should ultimately be measured by completed projects, increased investment, employment generation and improvements in living standards.

His position is that borrowing should be linked to investments capable of generating lasting economic benefits rather than being assessed solely by the size of the debt incurred.