President Bola Tinubu has defended his administration’s foreign borrowing plans, arguing that Nigeria needs sustained investment in infrastructure to achieve its ambition of becoming a $1 trillion economy by 2030.
The President identified major projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of commercial ports in Lagos, as key investments expected to benefit from the loans secured from international institutions and banks.
His explanation comes amid criticism from Nigerians, particularly opposition leaders, over the government’s growing borrowing plans and the implications for the country’s debt burden.
In an essay titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, Tinubu argued that the focus should be on the value generated from borrowed funds rather than the amount of money Nigeria takes in loans.
“The real question is not how much we borrow,” he wrote, emphasising the need to assess what the country builds and the benefits delivered to citizens.
Tinubu says infrastructure investment will create jobs
The President explained that the proposed infrastructure projects would connect economic regions, reduce transportation and logistics costs, improve trade and unlock opportunities in agriculture and manufacturing.
He said the Lagos-Calabar Coastal Highway could reduce logistics costs along its route by between 15 and 20 percent. The project is also projected to contribute up to 2 percent to Nigeria’s Gross Domestic Product (GDP) through increased trade, tourism and industrial activities.
According to Tinubu, the highway could create approximately 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect employment opportunities in logistics, building materials and related industries.
He described the projects as more than road construction, saying they would be about “opening economic corridors” and connecting markets to support industrial development.
The President added that investments in healthcare, education and vocational training would complement infrastructure development by strengthening human capital and expanding opportunities for Nigerians.
Nigeria targets a $1 trillion economy by 2030
Tinubu maintained that achieving the $1 trillion economic target would require infrastructure capable of supporting higher productivity, industrialisation and increased commercial activity.
He argued that Nigeria could not reach the target using infrastructure designed for a much smaller economy.
The President also said improvements in economic indicators and growing international investor confidence could help the country attract long-term investments and expand essential infrastructure.
Tinubu highlights gains from economic reforms
The President attributed improvements in Nigeria’s economic outlook to reforms introduced since May 2023, including the removal of petrol subsidies, exchange rate unification, tax reforms and measures aimed at controlling inflation.
He said these policies had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s position in international financial markets.
Nigeria’s real GDP growth reached 4.43 percent in the second quarter of 2026, while headline inflation declined to 14.63 percent in September from 20.98 percent recorded a year earlier.
The country’s gross external reserves also increased to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves.
Tinubu further noted that Nigeria’s tax-to-GDP ratio had improved from 7 percent to 12.5 percent, reflecting efforts to strengthen revenue generation.
Five priorities for Nigeria’s next economic phase
The President outlined five areas that would guide the next phase of the Federal Executive Council’s economic strategy.
They include improving food affordability and energy price stability, strengthening budget harmonisation and fiscal discipline, and completing major projects while expanding investment in critical infrastructure.
Other priorities are improving the economic policy framework and regulatory efficiency, as well as providing targeted household support and investing in human development.
Tinubu stressed that obtaining loans alone should not be considered a measure of success. Instead, the government would need to demonstrate that the borrowed funds were used to complete projects and improve living conditions.
“Securing financing is not the achievement,” he said, adding that the real measure of success would be delivering projects and improving the lives of Nigerians.
