President Bola Tinubu has asserted that moves by his administration to get external loans will help address Nigeria’s infrastructure deficit, stimulate economic growth and create opportunities for future generations.
Tinubu’s defence comes amid criticism from opposition parties, including the African Democratic Congress Presidential Campaign Council (ADC-PCC), which condemned his request for Senate approval to borrow billions of dollars and euro.
In an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” the president argued that the value of government borrowing should be assessed by the projects it finances and the economic benefits they generate.
“The real question is not how much we borrow, but what we build, what value we create and what future we leave behind,” he said.
On Tuesday, Tinubu asked the Senate to approve an external borrowing plan involving $20.51 billion and €1.45 billion to address funding gaps under the Federal Government’s 2026–2027 supplementary borrowing plan.
The request was conveyed in a letter read by Senate President Godswill Akpabio during plenary. According to the letter, the funds would help address Nigeria’s infrastructure deficit and finance critical socio-economic sectors.
However, the ADC-PCC criticised the proposed borrowing, arguing that it came at a time when Nigerians were grappling with rising living costs, increased taxation and the effects of petrol subsidy removal.
The opposition campaign council said the new borrowing plans could worsen the economic difficulties facing millions of Nigerians.
Responding to the criticism, Tinubu said his administration was shifting public borrowing away from financing immediate fiscal pressures towards investments expected to generate economic returns, create jobs and expand opportunities.
The president identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the 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 connect economic regions, reduce logistics costs, unlock agricultural and industrial potential and attract private investment.
According to Tinubu, the Lagos-Calabar Coastal Highway is expected 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 (GDP) through expanded trade, tourism and industrial activity.
The project is also projected to generate about 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs in logistics, materials supply and related services.
“We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” the president said.
He maintained that Nigeria’s ambition to build a $1 trillion economy by 2030 would require sustained infrastructure investment 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.
The president also defended his administration’s economic reforms, saying they had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
Tinubu further said Nigeria’s real GDP grew by 4.43 per cent in the second quarter of 2026, while headline inflation declined to 14.63 per cent in September from 20.98 per cent a year earlier.
He added that the country’s gross external reserves had risen to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves.
Tinubu also said the tax-to-GDP ratio had increased to 12.5 per cent from seven per cent.
He attributed the improvements to measures introduced by his administration, including petrol subsidy removal, exchange rate unification, tax reforms and coordinated efforts to tackle inflation.
“The decisions taken since 2023 were difficult but necessary,” he said.
According to the president, the changes had strengthened Nigeria’s capacity to attract investment and finance projects capable of supporting long-term economic growth.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
Tinubu cited assessments by international credit rating agencies as evidence of improved investor confidence, arguing that stronger external reserves and improved macroeconomic management had enhanced Nigeria’s financial credibility.
He said the development could help the country attract institutional investors, secure longer-term financing and reduce borrowing costs.
The president said his administration was pursuing longer-term financing arrangements that would align repayment structures with the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding for productive investments.
He maintained that the government must convert renewed international confidence into capital expenditure, completed infrastructure and lasting economic benefits for Nigerians.
Tinubu identified five priorities for the next phase of the Federal Executive Council’s economic strategy: food affordability and energy price stability; budget harmonisation and fiscal discipline; completion of high-impact projects and investment in critical infrastructure; improved economic policy and regulatory efficiency; and targeted household support alongside investment in human development.
He said the success of the administration’s economic policies would be measured by completed projects, increased investment, employment generation and improvements in living standards.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” he said.
The president added that Nigeria’s economic ambitions must be supported by responsible borrowing and investments capable of creating lasting opportunities for future generations.