President Bola Tinubu has defended the Federal Government’s fresh borrowing plans, insisting that Nigeria must prioritise the economic value of projects financed with loans rather than focus only on the amount borrowed.
The President made this position clear in an article titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, published on Friday, October 30, 2026. He argued that the country needs sustained investment in roads, electricity, railways and other critical infrastructure to support long-term economic development.
Tinubu maintained that responsible borrowing should expand the country’s productive capacity, create employment opportunities and attract private investment. He also linked the strategy to his administration’s ambition of building a $1 trillion economy by 2030.
His defence comes amid growing concerns about Nigeria’s debt obligations and questions from labour groups and opposition figures over the need for additional foreign loans.
Tinubu Defends Fresh Borrowing for Major Infrastructure Projects
The Federal Government’s proposed external borrowing programme includes $20.52 billion and €1.045 billion in financing facilities for the 2026–2027 period. The President wants the funds directed towards major infrastructure and development projects.
Among the priority projects are the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway and Trans-Sahara Superhighway. The government also plans to invest in electricity grid improvements and modernise major commercial ports in Lagos.
According to Tinubu, these projects will improve connections between economic centres and make it easier for businesses to transport goods across the country. Furthermore, better transport infrastructure could reduce logistics expenses, support agricultural production and encourage industrial expansion.
The President also highlighted investments in healthcare, education and vocational training as important parts of the development programme. He believes these sectors will strengthen the workforce and create opportunities for more Nigerians.
Tinubu pointed to the Lagos-Calabar Coastal Highway as an example of the expected economic benefits, saying the project could generate about 100,000 direct jobs and more than 150,000 indirect jobs through construction, logistics and related services.
However, the government will need to demonstrate that these projected benefits translate into completed projects and sustainable employment.
President Cites Economic Reforms and Debt Management
Tinubu also defended the borrowing strategy by pointing to improvements in several economic indicators since his administration introduced major reforms in 2023.
In the article, he said Nigeria’s real Gross Domestic Product grew by 4.43 per cent in the second quarter of 2026, while headline inflation declined to 14.63 per cent in September.
He also reported that the country’s gross external reserves reached $55.1 billion as of October 9, 2026. According to the President, these developments have improved investor confidence and strengthened Nigeria’s financial position.
In addition, Tinubu said the government was changing its borrowing approach by prioritising long-term financing for infrastructure that could serve the country for several decades. He argued that the repayment period for such loans should reflect the useful lifespan of the assets they finance.
Nevertheless, the President acknowledged the pressure of existing debt obligations. He disclosed that debt servicing consumed approximately 65 per cent of government revenue in the first half of 2026.
This figure highlights the importance of careful borrowing, particularly as the government seeks additional financing for its infrastructure programme.
NLC and Opposition Question Fresh Borrowing Plans
Despite the President’s explanation, the proposed loans have attracted criticism from organised labour and opposition figures, who want the government to provide clearer details about the financing arrangements.
The Nigeria Labour Congress has questioned the need for additional borrowing despite the removal of the petrol subsidy and changes to government revenue. Labour representatives have also raised concerns about the financial pressure that further debt could place on the country.
Similarly, opposition figures have demanded greater transparency regarding the projects, including their costs, financing conditions, implementation timelines and repayment schedules.
Their concerns reflect a wider debate about whether Nigeria can sustain additional borrowing while meeting existing financial obligations and addressing the economic difficulties facing households.
Accountability Remains Central to Nigeria’s Borrowing Debate
The debate over fresh borrowing goes beyond the government’s infrastructure ambitions. It also raises questions about project monitoring, public spending and the ability of government agencies to deliver projects within approved budgets.
Although Tinubu believes the proposed investments can strengthen the economy, Nigerians will expect clear evidence of how the loans improve transportation, electricity supply, employment and business activities.
Furthermore, transparent procurement processes and regular project updates will be important in building public confidence in the borrowing programme.
Ultimately, the success of the government’s strategy will depend on what it delivers with the borrowed funds. While infrastructure investment can support long-term development, responsible debt management remains essential to protecting public finances and future generations.