President Bola Tinubu addressed criticism of Nigeria’s recent external borrowing in an essay titled “From reforms to delivery: Our infrastructure investment and growth strategy,” stating that the key issue is not the size of the loans but the value of the projects they will fund and the legacy they will leave.
What projects are being prioritised?
Tinubu listed several high‑impact works, including the Lagos‑Calabar Coastal Highway, the Sokoto‑Badagry Superhighway, the Trans‑Sahara Superhighway, upgrades to the national electricity grid and the modernisation of Lagos’ major commercial ports. These initiatives are expected to link economic zones, lower logistics costs and unlock agricultural and industrial potential.
How will the highway corridor affect the economy?
The Lagos‑Calabar Coastal Highway is projected to reduce logistics expenses along its route by 15‑20 percent and could contribute up to 2 percent to Nigeria’s GDP through expanded trade, tourism and manufacturing. The construction phase is estimated to create roughly 100,000 direct jobs in building and engineering, with an additional 150,000 indirect positions in logistics, materials supply and related services.
What macro‑economic gains does the President cite?
Tinubu highlighted that real GDP grew by 4.43 percent in the second quarter of 2026, while headline inflation fell to 14.63 percent in September 2026, down from 20.98 percent a year earlier. External reserves rose to $55.1 billion as of 9 October 2026, including about $46 billion in net reserves, and the tax‑to‑GDP ratio improved to 12.5 percent from 7 percent.
Why does the administration consider the borrowing justified?
He attributed these improvements to reforms such as the removal of the petrol subsidy, unification of the exchange rate, tax restructuring and coordinated anti‑inflation measures. “The decisions taken since 2023 were difficult but necessary,” Tinubu said, adding that the reforms have lowered borrowing costs and reduced Nigeria’s country‑risk premium.
What is the long‑term vision for Nigeria’s economy?
Tinubu reiterated the ambition to build a $1 trillion economy by 2030, emphasizing that this target cannot be achieved by declaration alone. Sustainable infrastructure investment, higher productivity, industrialisation and expanded trade are required. He warned that “we cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size.”
How will financing be managed moving forward?
The President said the government is shifting public borrowing from short‑term fiscal pressures toward long‑term, project‑linked financing that matches the lifespan of infrastructure assets. This approach aims to reduce refinancing stress, secure more competitive funding and attract institutional investors.
What are the next priorities for the Federal Executive Council?
Tinubu outlined five focus areas: ensuring food affordability and stable energy prices; maintaining budget harmonisation and fiscal discipline; completing high‑impact projects and critical infrastructure; improving the economic policy framework and regulatory efficiency; and providing targeted household support while investing in human development.
In his concluding remarks, Tinubu stressed that success will be measured by completed projects, increased investment, job creation and improved living standards. “Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” he affirmed.