The Federal Government is borrowing to build assets for future generations, President Bola Ahmed Tinubu has said.
Tinubu made this known on Thursday while defending his administration’s utilisation of foreign loans.
He said the decisive consideration should be the value created through infrastructure, jobs and opportunities.
The President said his administration was shifting public borrowing towards productive investments that would strengthen Nigeria’s economic capacity and support its ambition of becoming a $1 trillion economy by 2030.
Tinubu’s position was contained in an article: “From reforms to delivery: Our infrastructure investment and growth strategy,” made available 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 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 investments expected to expand the country’s productive capacity. BuyMaps
The President’s letter to the Senate requesting clearance for him to obtain a $21.7billion loan was read in plenary by Senate President Godswill Akpabio.
The Debt Management Office (DMO) had put the value of subsisting foreign and domestic loans at about N166trillion, with critics and the opposition questioning the loans.
Finance Minister Taiwo Oyedele on Wednesday asked critics to point out where any government runs without loans.
He said the loans should be judged by the assets and economic returns they create, not merely as new debt.
According to the President, the projects, alongside investments in healthcare, education and vocational training, would connect economic regions, reduce logistics costs, unlock agricultural and industrial potentials and attract private investment.
Tinubu said the Lagos-Calabar Coastal Highway was 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 increased trade, tourism and industrial activity.
The project, he added, was 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,” he said.
The President argued that achieving the administration’s economic target required sustained investment in infrastructure capable of supporting higher productivity, industrialisation 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 would not be achieved by declaration alone, but through investments that expanded productive activity and delivered lasting economic benefits.
Explaining the government’s financing approach, Tinubu said borrowing was being redirected from meeting short-term fiscal pressures towards investments capable of generating economic returns, creating employment and expanding opportunities for future generations.
He said the Administration was also pursuing longer-term financing arrangements that matched the lifespan of infrastructure assets, reduced refinancing pressures and secured more competitive funding for productive investments.
The President maintained that reforms introduced since May 2023 had restored macroeconomic stability, strengthened public finances and improved Nigeria’s standing in international financial markets.
He cited real GDP growth of 4.43 per cent in the second quarter of 2026 and a decline in headline inflation to 14.63 per cent in September from 20.98 per cent a year earlier.
Tinubu also said gross external reserves rose to $55.1 billion as of October 9, 2026, including about $46 billion in net reserves, while the tax-to-GDP ratio increased from seven per cent to 12.5 per cent.
He attributed the improvements to petrol subsidy removal, exchange rate unification, tax reforms and coordinated measures to tackle inflation.
“The decisions taken since 2023 were difficult but necessary,” he said.
According to the President, the gains had strengthened Nigeria’s capacity to attract investment and secure financing for projects that would 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 cited positive assessments by international credit rating agencies as evidence of stronger confidence in Nigeria’s economy, saying the improved standing could attract institutional investors, secure longer-term financing and lower 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 said the government must translate renewed international confidence into capital expenditure, completed infrastructure and tangible benefits for Nigerians.
He outlined five priorities for the next phase of the Federal Executive Council’s economic strategy, including food affordability and energy price stability; budget harmonisation and fiscal discipline; and completion of high-impact projects alongside investment in critical infrastructure.
The other priorities are an improved economic policy framework and regulatory efficiency, as well as targeted household support and investment in human development.
Tinubu stressed that the Administration’s economic programmes would ultimately be judged 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 are the achievement,” he said.
The Federal Government had on Wednesday said the proposed $21.7 billion external borrowing plan is a five-year financing framework for productive investments, not money already borrowed or necessarily drawn down in full.
About $10.6 billion is earmarked for transport infrastructure, including the Sokoto-Badagry and Lagos-Calabar highways and the Kano-Kaduna rail project.
The remainder spans defence and security, health, agriculture, energy, digital infrastructure, finance, MSMEs, social protection, environment and education.
About $7.9 billion is expected from multilateral and bilateral lenders, led by a $5 billion World Bank facility.
Concessional social-sector financing would average about two per cent interest, while the commercial component’s indicative average rate is 7.8 per cent, which Oyedele said compares favourably with Nigeria’s recent Eurobond.
