President Bola Tinubu has defended Nigeria's increased borrowing from international institutions and banks, arguing that the funds will finance infrastructure projects that create long-term economic value rather than cover short-term spending. In a statement released through his spokesman on Thursday, Tinubu said the key question is not how much Nigeria borrows but what it builds and what future it creates. He identified major projects including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and modernisation of commercial ports in Lagos as central to expanding Nigeria's productive capacity.
The president said these infrastructure investments, combined with spending on healthcare, education and vocational training, would connect economic regions, reduce logistics costs and unlock agricultural and industrial potential. The Lagos-Calabar Coastal Highway alone is expected to cut logistics costs along its corridor by 15 to 20 per cent and could add up to two per cent to Nigeria's GDP through expanded trade, tourism and industrial activity. The project is projected to generate about 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, materials and related services.
Tinubu linked the borrowing strategy to the administration's goal of building a one trillion dollar economy by 2030, saying Nigeria cannot achieve this with infrastructure designed for a much smaller economy. He pointed to economic indicators showing improvement since reforms introduced in May 2023. Real Gross Domestic Product growth reached 4.43 per cent in the second quarter of 2026, while headline inflation fell to 14.63 per cent in September from 20.98 per cent a year earlier. Gross external reserves rose to $55.1 billion as of 9 October 2026, and the tax-to-GDP ratio increased to 12.5 per cent from seven per cent.
The president said the government is shifting public borrowing away from financing short-term spending towards investments generating economic returns and job creation. He noted that improved economic indicators and growing international investor confidence had lowered Nigeria's cost of borrowing and country risk premium. Tinubu identified five priorities for the next phase of economic strategy: food affordability and energy price stability, budget harmonisation and fiscal discipline, completion of high-impact projects, improved policy frameworks and regulatory efficiency, and targeted household support combined with investment in human development. He emphasised that success would be measured by completed projects, increased investment, employment generation and improved living standards rather than simply securing financing.
For savers, borrowers, business owners and investors in Nigeria, lower borrowing costs and improved external reserves could reduce interest rates and create opportunities for productive investment, though the success depends on completing the promised infrastructure projects.