Tinubu Defends Fresh Loans, Says Nigeria Must Borrow to Build $1tn Economy

By Adedapo Adesanya

President Bola Tinubu has defended his administration’s plan to secure additional foreign loans, saying Nigeria needs long-term investments in infrastructure to achieve its ambition of becoming a $1 trillion economy by 2030.

President Tinubu said the proposed loans would fund road construction, electricity improvements, port upgrades and other infrastructure projects expected to create jobs, support businesses and expand economic opportunities.

In a piece titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, the President said the focus should be on what the borrowed funds would achieve rather than the amount being borrowed.

“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind,” he said.

Mr Tinubu listed the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and upgrades to major commercial ports in Lagos among the projects the government plans to finance.

He said the projects, alongside investments in healthcare, education and vocational training, would connect economic regions, reduce transportation costs, support agriculture and industries, and attract private investment.

According to him, the Lagos-Calabar Coastal Highway alone could reduce transportation costs along its route by 15 to 20 per cent and contribute up to two per cent to Nigeria’s Gross Domestic Product through increased trade, tourism and industrial activities.

He projected that the highway would generate about 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs in logistics, building materials and related services.

“We are building more than highways. We are opening economic corridors, connecting markets, supporting industries and reshaping Nigeria’s economic geography,” he said.

The President argued that Nigeria would require improved infrastructure to achieve its $1 trillion economic target by 2030.

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

President Tinubu also highlighted improvements in some economic indicators since his administration introduced major reforms in May 2023, including petrol subsidy removal, exchange rate unification, tax reforms and efforts to control inflation.

He said Nigeria’s economy 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 in the corresponding period of 2025.

He added that the country’s gross external reserves stood at $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves.

The President further stated that Nigeria’s tax-to-GDP ratio had increased to 12.5 per cent from seven per cent, while net allocations from the Federation Account Allocation Committee rose by 44 per cent, from N15.2 trillion in 2024 to N21.9 trillion in 2025.

According to him, the improvements had strengthened Nigeria’s attractiveness to foreign investors and enabled the country to secure loans at more favourable rates.

President Tinubu cited positive assessments by international credit rating agencies, Nigeria’s return to Frontier Market status and its successful Eurobond issuance as indications of growing investor confidence.

He said the government was pursuing longer-term loans that would allow repayment periods to align with the lifespan of the projects being financed, thereby reducing pressure from frequent debt repayments and securing better borrowing terms.

However, the President acknowledged the need to manage public spending, noting that public debt stood at 35.75 per cent of GDP in the second quarter of 2026, while debt servicing accounted for about 65 per cent of revenue in the first half of the year.

He said the Federal Executive Council’s economic plan included avoiding the printing of money to finance budget deficits and preventing spending commitments that were not backed by available funds during the pre-election period.