President Bola Ahmed Tinubu has defended his administration’s borrowing strategy, insisting that funds raised through loans are increasingly being directed towards infrastructure projects capable of expanding Nigeria’s economy, creating jobs and generating long-term revenue.
In an article titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, published on Friday, Tinubu said the country had moved beyond borrowing to address short-term financial challenges and was now focusing on investments that would strengthen its productive capacity.
The President identified the removal of petrol subsidy, foreign exchange reforms and changes to the tax system as some of the major economic decisions taken since 2023.
He claimed that the reforms had improved the country’s financial position, citing an increase in real Gross Domestic Product (GDP) growth to 4.43 per cent in the second quarter of 2026, compared with 2.74 per cent in 2023.
Tinubu also stated that headline inflation declined to 14.63 per cent in September 2026 from 20.98 per cent a year earlier, while the country’s gross external reserves reached $55.1 billion as of October 9, 2026.
According to him, these developments have improved Nigeria’s access to international capital and created opportunities to secure longer-term financing at more competitive rates.
The President maintained that public borrowing should be assessed based on the economic value of the projects it finances rather than simply the amount borrowed.
He listed major infrastructure projects being prioritised by his administration, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and the modernisation of major commercial ports in Lagos.
He said the projects, alongside investments in healthcare, education and vocational training, would improve transportation, reduce the cost of moving goods, support agriculture and industrial development, attract private investment and create employment opportunities.
Tinubu disclosed that the Lagos-Calabar Coastal Highway was recording progress, with Lot 2 reported to be more than 80 per cent complete as of August 2026, while construction works along the Calabar-Akwa Ibom section had exceeded 30 per cent completion.
He further argued that the coastal highway could reduce logistics costs along its corridor by between 15 and 20 per cent and contribute up to two per cent to Nigeria’s GDP through increased trade, tourism and industrial activities.
On debt management, the President said his administration was extending repayment periods to align financing arrangements with the expected lifespan of infrastructure projects.
He acknowledged that debt servicing remained a major fiscal concern, noting that debt service accounted for approximately 65 per cent of government revenue in the first half of 2026.
He also maintained that fiscal discipline would remain central to the borrowing strategy, adding that the Federal Executive Council had prioritised avoiding deficit monetisation and unfunded financial commitments.
Tinubu cited positive assessments from international credit rating agencies, Nigeria’s return to FTSE Russell’s Frontier Market status and its removal from the Financial Action Task Force (FATF) grey list as signs of improving international financial confidence.
The President said the next phase of the country’s economic programme would focus on completing major projects, improving food affordability and energy price stability, maintaining fiscal discipline, strengthening economic policies and providing targeted support to households.
He insisted that the ultimate objective was to build a $1 trillion economy by 2030 through infrastructure investment, higher productivity, industrialisation and increased trade.
Tinubu concluded that the success of the economic reforms would ultimately be measured by completed projects, job creation and tangible improvements in the living conditions of Nigerians.
