President Bola Tinubu has defended his administration’s borrowing strategy, arguing that Nigeria needs sustained investment in critical infrastructure to achieve its $1 trillion economy target by 2030.
In an essay titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, Tinubu said the government’s borrowing decisions should be assessed by the economic value generated from the projects financed, rather than the amount borrowed.
“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.
The president cited the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and modernisation of commercial ports as key projects expected to improve connectivity, stimulate trade and strengthen Nigeria’s productive capacity.
According to Tinubu, the Lagos-Calabar Coastal Highway could reduce logistics costs along its corridor by 15 to 20 per cent and contribute up to two per cent to gross domestic product through increased trade, tourism and industrial activity.
He added that the project was projected to generate about 100,000 direct jobs in construction and engineering, alongside 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,” Tinubu said.
The president argued that Nigeria could not achieve its economic ambition without infrastructure capable of supporting a larger economy, particularly in transportation, electricity and trade.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he said.
Tinubu also linked the infrastructure programme to the administration’s economic reforms, including petrol subsidy removal, exchange rate unification and tax reforms, which he said had helped improve macroeconomic stability and investor confidence.
He cited real GDP growth of 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.
The president further said Nigeria’s gross external reserves stood at $55.1 billion as of October 9, 2026, including about $46 billion in net reserves. He added that the country’s tax-to-GDP ratio had increased to 12.5 per cent from seven per cent.
Tinubu said improved economic indicators and assessments by international credit rating agencies had strengthened investor confidence and created opportunities for Nigeria to secure longer-term financing at more competitive rates.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
The administration’s position is that external financing should increasingly support long-term investments capable of generating economic returns, rather than short-term fiscal needs. Tinubu said aligning repayment periods with the lifespan of infrastructure assets would also help reduce refinancing pressures.
However, the economic benefits of the borrowing strategy will depend on project completion, implementation costs, revenue generation and the extent to which new infrastructure translates into higher productivity and employment.
The president outlined five priorities for the next phase of the Federal Executive Council’s economic strategy: improving food affordability and energy price stability; strengthening budget harmonisation and fiscal discipline; completing major infrastructure projects; improving economic policy and regulatory efficiency; and providing targeted household support alongside investment in human development.
He said the administration’s performance should ultimately be measured by the delivery of projects and improvements in Nigerians’ living standards.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” Tinubu said.