President Bola Ahmed Tinubu has defended his administration’s reliance on foreign loans, saying the Federal Government is borrowing to develop infrastructure and create assets that will benefit future generations.
The President made this known on Thursday while explaining the government’s approach to foreign borrowing, arguing that the focus should be on the economic value generated through infrastructure development, job creation and expanded opportunities.
Tinubu said his administration was redirecting public borrowing towards productive investments that would strengthen Nigeria’s economic capacity and support its ambition of growing into a $1tn economy by 2030.
His position was contained in an article titled, “From reforms to delivery: Our infrastructure investment and growth strategy,” released by his Special Adviser on Information and Strategy, Bayo Onanuga.
“The real question is not how much we borrow, but what we build, what value we create and what future we leave behind,” the President said.
Tinubu listed 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 projects expected to expand Nigeria’s productive capacity.
The President’s request for Senate approval to secure a $21.7bn foreign loan was recently presented during plenary by Senate President Godswill Akpabio.
Meanwhile, the Debt Management Office (DMO) has put Nigeria’s outstanding domestic and external debt at approximately N166tn, with opposition figures and other critics questioning the government’s continued borrowing.
However, the Minister of Finance, Taiwo Oyedele, on Wednesday challenged critics to identify any government that operates without borrowing.
Oyedele maintained that loans should be assessed based on the assets and economic benefits they generate rather than simply being viewed as additional debt.
Tinubu explained that the proposed infrastructure projects, alongside investments in healthcare, education and vocational training, would improve connectivity between economic regions, lower transportation costs, unlock agricultural and industrial opportunities and encourage private-sector investment.
He projected that the Lagos-Calabar Coastal Highway would cut logistics expenses along its route by 15 to 20 per cent and potentially contribute up to two per cent to Nigeria’s Gross Domestic Product through increased trade, tourism and industrial activities.
According to him, the project is also expected to create approximately 100,000 direct jobs in construction and engineering, as well as over 150,000 indirect employment opportunities in logistics, materials supply and related services.
“We are not simply building highways. We are opening economic corridors,” he said.
The President argued that achieving the $1tn economic target would require consistent investment in infrastructure capable of driving productivity, industrial growth and trade.
“We cannot build a $1 trillion economy with infrastructure designed for an economy a fraction of that size,” Tinubu said.
He stressed that the target could not be achieved through declarations alone but would depend on investments that expand productive activities and deliver sustainable economic benefits.
On the government’s financing strategy, Tinubu said borrowing was being shifted away from addressing immediate fiscal challenges towards projects capable of generating economic returns, providing employment and creating opportunities for future generations.
He added that the administration was adopting longer-term financing arrangements that align with the lifespan of infrastructure projects, ease refinancing pressures and provide more competitive funding for productive investments.
The President also maintained that economic reforms introduced since May 2023 had helped restore macroeconomic stability, improve public finances and strengthen Nigeria’s position in international financial markets.
He cited a 4.43 per cent real Gross Domestic Product growth in the second quarter of 2026, while headline inflation declined to 14.63 per cent in September from 20.98 per cent recorded in the corresponding period of the previous year.
Tinubu further disclosed that Nigeria’s gross external reserves increased to $55.1bn as of October 9, 2026, including approximately $46bn in net reserves, while the country’s tax-to-GDP ratio rose from seven per cent to 12.5 per cent.
He attributed these developments to the removal of petrol subsidies, exchange rate unification, tax reforms and coordinated efforts to control inflation.
“The decisions taken since 2023 were difficult but necessary,” he said.
According to him, the economic improvements have enhanced Nigeria’s ability to attract investments and obtain financing for projects that support long-term growth.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
Tinubu also referenced positive evaluations by international credit rating agencies as evidence of growing confidence in the Nigerian economy.
He said the improved ratings could help attract institutional investors, provide access to longer-term financing and reduce borrowing costs.
“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 said.
The President stressed that the government must convert the renewed international confidence into capital expenditure, completed infrastructure and measurable improvements in the lives of Nigerians.
He also outlined five priorities for the next phase of the Federal Executive Council’s economic strategy.
They include improving food affordability and maintaining energy price stability; harmonising budgets and strengthening fiscal discipline; completing major projects and investing in critical infrastructure; improving economic policies and regulatory efficiency; and providing targeted household support alongside investments in human development.
Tinubu maintained that the success of the administration’s economic programmes would ultimately be measured by completed projects, increased investments, employment opportunities and better living conditions.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians are the achievement,” he said.
Earlier, the Federal Government clarified that the proposed $21.7bn external borrowing plan represents a five-year financing framework for productive investments rather than funds already borrowed or necessarily expected to be withdrawn in full.
Approximately $10.6bn of the proposed facility is earmarked for transport infrastructure, including the Sokoto-Badagry and Lagos-Calabar highways, as well as the Kano-Kaduna rail project.
The remaining funds are expected to cover defence and security, healthcare, agriculture, energy, digital infrastructure, finance, micro, small and medium-sized enterprises, social protection, environmental projects and education.
The government expects about $7.9bn to come from multilateral and bilateral lenders, with the World Bank accounting for the largest share through a proposed $5bn facility.
According to Oyedele, concessional financing for social-sector projects would attract an average interest rate of about two per cent, while the commercial component has an indicative average rate of 7.8 per cent, which he said compares favourably with Nigeria’s recent Eurobond borrowing.