Tinubu Defends Fresh Borrowing, Says Lagos-Calabar Coastal Highway Could Add 2% To GDP, Create 250,000 Jobs | Sahara Reporters

The President’s defence comes amid continuing public debate over government borrowing, the cost of living and the impact of economic reforms introduced since he assumed office in May 2023.

President Bola Tinubu has defended his administration’s fresh borrowing plans amid criticism from opposition leaders over loans obtained from international financial institutions and banks, insisting that the funds would support infrastructure development, boost economic productivity and create opportunities for future generations.

Tinubu said that the central issue was not the volume of loans being obtained but whether the borrowed funds would be invested in projects capable of generating lasting economic value, creating jobs and improving the living conditions of Nigerians.

This is contained in a statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy, on Thursday.

In a essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” scheduled for publication on Nigerian news platforms, the President said Nigeria needs sustained investment in critical infrastructure to achieve his administration’s ambition of building a $1 trillion economy by 2030.

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

The President’s defence comes amid continuing public debate over government borrowing, the cost of living and the impact of economic reforms introduced since he assumed office in May 2023.

According to Tinubu, Nigeria cannot achieve the targeted economic expansion without major investments in roads, electricity, ports, healthcare, education and vocational training.

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

He 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 the country’s productive capacity.

The President said the projects would connect economic regions, reduce transportation and logistics costs, unlock agricultural and industrial potential, improve trade and attract private-sector investment.

Tinubu highlighted the Lagos-Calabar Coastal Highway as one of the major infrastructure projects expected to generate substantial economic benefits.

According to the President, the highway is projected to reduce logistics costs along its corridor by between 15 and 20 per cent and could contribute up to two per cent to Nigeria’s Gross Domestic Product (GDP) through expanded trade, tourism and industrial activities.

He said the project was also expected to generate approximately 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, building 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,” Tinubu said.

He maintained that the highway and other infrastructure projects would help connect markets, improve the movement of goods and people, stimulate commercial activities and create opportunities for businesses across the country.

The President said the administration’s $1 trillion economy target by 2030 would require increased productivity, industrialisation, expanded trade and infrastructure capable of supporting a significantly larger economy.

In his statement, Tinubu also cited recent economic indicators as evidence that his administration’s policies were improving Nigeria’s macroeconomic position and strengthening investor confidence.

He said Nigeria’s real GDP grew by 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 a year earlier.

The President further stated that the country’s gross external reserves had risen to $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves.

He also said Nigeria’s tax-to-GDP ratio had increased to 12.5 per cent from seven per cent.

Tinubu attributed the developments to economic measures introduced by his administration, including the removal of the petrol subsidy, the unification of the foreign exchange rate, tax reforms and coordinated efforts to bring inflation under control.

“The decisions taken since 2023 were difficult but necessary,” he said.

The President explained that the reforms had helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.

He said the gains were creating opportunities for the country to attract long-term investment and finance critical infrastructure needed to support economic growth.

Tinubu also defended the country’s borrowing strategy by arguing that improved investor confidence and positive assessments from international credit rating agencies were helping to reduce Nigeria’s cost of accessing finance.

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

He cited assessments by international credit rating agencies as evidence that investors and financial institutions were responding positively to changes in the country’s economic management.

“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,” the President said.

According to Tinubu, improved international confidence could help Nigeria attract more institutional investors, secure longer-term financing and negotiate more favourable borrowing terms.

He maintained that the government was moving away from borrowing primarily to meet immediate fiscal pressures towards financing investments expected to generate economic returns, stimulate employment and expand opportunities for future generations.

The President also said the administration is pursuing longer-term financing arrangements that would better match the repayment periods of loans with the useful lifespan of infrastructure assets.

According to him, the approach would reduce refinancing pressures and help the government secure more competitive funding for productive investments.

The President identified five priorities for the next phase of the Federal Executive Council’s economic strategy, saying the government must translate renewed international confidence into completed projects and measurable improvements in the lives of citizens.

The priorities include 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.

He said addressing food prices and energy costs would remain important to easing economic pressures on households, while fiscal discipline and better coordination of government budgets would help ensure that available resources were deployed more effectively.

Tinubu also stressed the need to complete major infrastructure projects, improve the regulatory environment for businesses and expand investments in healthcare, education, vocational training and other areas of human development.

He said the government’s economic programmes should ultimately be assessed by their practical outcomes rather than the amount of money raised or the volume of financing secured.

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

The President maintained that Nigeria’s economic ambitions would require responsible borrowing, sustained capital expenditure and investments capable of generating long-term returns.

SaharaReporters reported on Tuesday that Tinubu had asked the National Assembly to approve a fresh external borrowing plan of $20.52 billion and €1.04 billion for projects and programmes across several sectors, less than 100 days before Nigeria’s scheduled January 16, 2027 general election.

Tinubu’s latest borrowing request was conveyed in a letter read by Senate President Godswill Akpabio during plenary on Tuesday.

The request followed a series of borrowing proposals and loan approvals secured by the Tinubu administration from the National Assembly, raising renewed questions about Nigeria’s growing debt obligations, the government’s borrowing strategy and the financial burden future administrations and taxpayers may face.

The latest borrowing proposal follows the National Assembly’s approval in March 2026 of two external financing facilities sought by Tinubu, totalling $6 billion.

As reported by SaharaReporters, the facilities comprised a proposed $5 billion financing programme from First Abu Dhabi Bank in the United Arab Emirates and a $1 billion UK-backed export credit facility arranged through Citibank for the rehabilitation of the Lagos Port Complex and Tin Can Island Port.

The Nigerian Government said the $5 billion facility would support budget implementation, finance priority infrastructure projects and refinance existing high-cost domestic and external debts.

The $1 billion facility was intended to fund the reconstruction and rehabilitation of the two major Lagos ports.