Pricked by the public outcry that has greeted his request for additional foreign loans, President Bola Tinubu has defended his administration’s borrowing from international institutions and banks, saying Nigeria needs sustained infrastructure investment to achieve its target of a $1 trillion economy by 2030.
Special adviser to the president on information and strategy, Bayo Onanuga
in a statement on Thursday, stated that Tinubu made the remarks in an essay titled ‘From reforms to delivery: Our infrastructure investment and growth strategy’.
President Tinubu noted that the target should be on the value generated from borrowed funds rather than the amount of debt incurred.
“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.
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 Nigeria’s productive capacity.
The president said the projects, alongside investments in healthcare, education and vocational training, would connect economic regions, reduce logistics costs, unlock agricultural and industrial potential, and attract private investment.
Tinubu said the Lagos-Calabar Coastal highway is expected to reduce logistics costs along its corridor by 15 to 20 per cent and could contribute up to two per cent to Nigeria’s gross domestic product through expanded trade, tourism and industrial activity.
He added that 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.
“We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” he said.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size.”
Tinubu said the reforms have helped restore macroeconomic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
“The decisions taken since 2023 were difficult but necessary. Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” Tinubu said.
“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,” said Tinubu.
The President noted that his government was shifting public borrowing away from financing short-term fiscal pressures towards investments expected to generate economic returns, create jobs and expand opportunities for future generations.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” Tinubu said.
