Tinubu justifies borrowing: ‘We are building future, not piling debt’

By Egena Sunday Ode

President Bola Tinubu has defended his administration’s borrowing plans, saying loans are being channelled into infrastructure that will expand opportunities for future generations.

In an essay titled “From reforms to delivery: Our infrastructure investment and growth strategy,” Tinubu said the focus should be on what the borrowings build, not just how much is borrowed.

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

He listed major projects expected to strengthen productive capacity to include the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and modernisation of key ports in Lagos.

According to him, the projects, alongside investments in healthcare, education and vocational training, will 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 cut logistics costs along its corridor by 15 to 20 per cent and could add up to two per cent to GDP through expanded trade, tourism and industrial activity.

The project, he added, is projected to generate about 100,000 direct jobs in construction and engineering and 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.

The President said building a $1 trillion economy by 2030 would require sustained infrastructure investment.

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

Tinubu noted that real GDP growth reached 4.43 per cent in the second quarter of 2026, 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 October 9, 2026, including about $46 billion net reserves, while tax-to-GDP ratio increased to 12.5 per cent from seven per cent.

He attributed the gains to petrol subsidy removal, exchange rate unification, tax reforms and coordinated anti-inflation measures.

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

According to him, the reforms have restored macroeconomic stability, strengthened public finances, improved Nigeria’s standing in international financial markets, reduced cost of borrowing and lowered country risk premium.

“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.

Tinubu said government is shifting borrowing from financing short-term fiscal pressures to investments that generate returns, create jobs and expand opportunities, while pursuing longer-term financing to match lifespan of infrastructure assets.

He said renewed confidence must be converted to capital expenditure, completed infrastructure and lasting benefits.

He listed 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; improved economic policy and regulatory efficiency; and targeted household support and human development.

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