Tinubu defends new loans, says funds will build future opportunities

Politics Spice Special Features Education Sex & Relationship Interview Columns Opinion Advertise with us Tinubu defends new loans, says funds will build future opportunities News October 29, 2026 2:45 pm President Bola Tinubu. Photo: State House

President Bola Tinubu has robustly defended Nigeria’s new borrowing from international institutions and banks, insisting the loans will fund infrastructure that expands opportunities for future generations.

In a post by his Spokesman, Bayo Onanuga on X on Thursday, in an essay titled “From reforms to delivery: Our infrastructure investment and growth strategy,” the President responded to criticism, especially from opposition leaders.

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

Tinubu identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of key commercial ports in Lagos as major projects expected to strengthen Nigeria’s productive capacity.

These, alongside investments in healthcare, education and vocational training, would connect economic regions, reduce logistics costs, unlock agricultural and industrial potential and attract private investment.

The Lagos-Calabar Coastal Highway 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.

It is also 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.

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

He linked the investments to the administration’s ambition to build a $1 trillion economy by 2030. “We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” Tinubu stated.

The President said economic reforms introduced in May 2023 had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.

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, including about $46 billion in net reserves, and the tax-to-GDP ratio increased to 12.5 per cent from seven per cent.

“The decisions taken since 2023 were difficult but necessary,” he said, referring to measures including petrol subsidy removal, exchange rate unification, tax reforms and coordinated efforts to tackle inflation.

Tinubu noted that improving economic indicators and growing international investor confidence were creating opportunities for Nigeria to attract long-term investment.

“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.

He cited positive assessments by international credit rating agencies as evidence of improved confidence.

“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,” Tinubu said.

The administration was shifting public borrowing away from financing short-term fiscal pressures towards investments that would generate economic returns, create jobs and expand opportunities for future generations.

It was also pursuing longer-term financing arrangements to match the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding.

Tinubu said Nigeria must convert renewed international confidence into capital expenditure, completed infrastructure and lasting economic benefits for citizens.

He identified five priorities for the next phase of the Federal Executive Council’s economic strategy: food affordability and energy price stability; budget harmonisation and fiscal discipline; completion of high-impact projects and investment in critical infrastructure; an improved economic policy framework and regulatory efficiency; and targeted household support alongside investment in human development.

The success of the administration’s economic schemes would be measured by completed projects, increased investment, employment generation and improved living standards.

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

He added that the nation’s economic ambition must be supported by responsible borrowing and investments that create lasting opportunities for future generations.

Gilbert Ekugbe is a journalist at Punch Newspapers with over a decade of experience reporting on business and economic affairs. He covers markets, corporate developments, finance, and Nigeria’s broader economic landscape. His reporting is informed by extensive newsroom experience and a strong commitment to accuracy and responsible journalism, helping readers understand complex business issues.

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