By Taibat Ummi Yakubu

President Bola Tinubu has defended his administration’s growing reliance on foreign loans, arguing that borrowing should not be judged solely by the amount involved but by the infrastructure, economic opportunities and long-term benefits such funds are expected to deliver.

The President made the position known in an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” where he addressed concerns raised by opposition politicians and other critics over the government’s borrowing plans from international financial institutions and banks.

“The real question is not how much we borrow, but what we build, what value we create, and what future we leave behind,” Tinubu stated.

He identified several major infrastructure projects, including 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 investments expected to expand Nigeria’s economic capacity.

According to him, the Lagos-Calabar Coastal Highway alone is projected to reduce logistics costs along its route by between 15 and 20 per cent and potentially contribute up to two per cent to the country's Gross Domestic Product (GDP) through increased trade, tourism and industrial activities.

The project is also expected to create approximately 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect employment opportunities in logistics, building materials and related services.

Tinubu maintained that the infrastructure programme goes beyond road construction, explaining that the projects would connect major economic centres, improve the movement of goods, open up agricultural and industrial opportunities and encourage private sector investment.

“We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” he said.

The President said his administration's ambition to grow Nigeria into a $1 trillion economy by 2030 would depend heavily on sustained investments in infrastructure, industrialisation, productivity and international trade.

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

Defending the economic direction of his government, Tinubu attributed improvements in some key economic indicators to reforms introduced since May 2023, including the removal of petrol subsidies, the unification of the foreign exchange market, tax reforms and measures aimed at controlling inflation.

He said the reforms, despite the difficulties they initially created, had helped strengthen public finances, restore macroeconomic stability and improve Nigeria's credibility in international financial markets.

The President disclosed that Nigeria recorded a real GDP growth rate 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 recorded during the corresponding period of the previous year.

He further revealed that the country's gross external reserves had increased to $55.1 billion as of October 9, 2026, with net reserves standing at approximately $46 billion.

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Tinubu also said Nigeria's tax-to-GDP ratio had risen to 12.5 per cent from seven per cent, describing the developments as signs of improving economic fundamentals.

According to him, the progress recorded so far has strengthened the country's ability to attract foreign investment and access financing for 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,” the President said.

He also pointed to assessments by international credit rating agencies and other global financial institutions as evidence that confidence in Nigeria's economic management was improving.

“These are not political endorsements; they are independent assessments by global rating agencies, index providers, regulators and investors, recognising stronger external reserves, improved macroeconomic management and greater financial credibility,” he stated.

Tinubu argued that improved international confidence could help Nigeria attract more institutional investors, secure longer-term financing and negotiate loans at more competitive rates.

He said his administration was also changing its approach to public borrowing by moving away from loans used to address immediate fiscal pressures towards financing infrastructure and productive investments capable of generating economic returns, creating employment and expanding opportunities for future generations.

The President explained that the government was pursuing longer-term financing arrangements that would correspond with the lifespan of infrastructure projects, thereby reducing refinancing pressures and making funding more sustainable.

He, however, acknowledged that attracting financing alone would not be enough, insisting that the ultimate responsibility of the government was to translate available funds into completed projects and tangible improvements in the lives of Nigerians.

Outlining the next phase of the Federal Executive Council's economic strategy, Tinubu identified five major priorities: making food more affordable and stabilising energy prices; ensuring budget harmonisation and fiscal discipline; completing major infrastructure projects; improving economic policies and regulatory efficiency; and providing targeted household support while investing in human development.

He said the administration would ultimately be judged by the number of projects completed, the investments attracted, jobs created and improvements in the living conditions of citizens.

“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” he declared.

The President maintained that Nigeria's ambition of becoming a $1 trillion economy by 2030 must be backed by responsible borrowing, effective project execution and investments that deliver lasting economic benefits rather than simply adding to the country's debt obligations.