President Bola Tinubu told the nation on October 9, 2026 that the administration’s request for $20.5 billion and €1.45 billion in fresh external loans is aimed at financing a suite of high‑impact infrastructure works, including highways, power grids and port upgrades, to expand economic opportunities for future generations.
Key facts:
- The loans are intended to fund the Lagos‑Calabar Coastal Highway, Sokoto‑Badagry Superhighway, Trans‑Sahara Superhighway, nationwide electricity grid upgrades and modernisation of Lagos’ commercial ports.
- Tinubu estimates the Lagos‑Calabar project could cut logistics costs by 15‑20 % and add up to 2 % to GDP, creating roughly 100,000 direct construction jobs and 150,000 indirect jobs.
- Recent macro‑economic data show real GDP growth of 4.43 % in Q2 2026 and headline inflation falling to 14.63 % in September, while external reserves rose to $55.1 billion.
- The Nigeria Labour Congress (NLC) president Joe Ajaero demanded an explanation for continued borrowing despite higher oil revenues and the removal of the petrol subsidy.
- Tinubu warned that building a $1 trillion economy by 2030 requires infrastructure sized for that future, not for a smaller economy.
What projects are being prioritised?
The administration highlighted five flagship corridors: the Lagos‑Calabar Coastal Highway, the Sokoto‑Badagry Superhighway, the Trans‑Sahara route, extensive upgrades to the national electricity transmission network, and the refurbishment of Lagos’ key commercial ports. Tinubu said these works will link economic zones, lower transport costs, unlock agricultural and industrial potential and attract private capital.
How does the government justify the borrowing?
Tinubu argued that the focus should be on the value generated by the borrowed funds, not the headline amount. “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 linked the borrowing strategy to reforms introduced since May 2023, such as petrol subsidy removal, exchange‑rate unification and tax reforms, which he said have improved fiscal metrics and reduced Nigeria’s risk premium.
What are the NLC’s concerns?
NLC President Joe Ajaero, speaking on Channels Television’s The Morning Brief, asked why the government continues to seek loans from the IMF, World Bank and other agencies when oil revenues have risen sharply after the subsidy removal. He warned that additional borrowing could exacerbate the nation’s debt burden and questioned whether external financing truly serves Nigeria’s best interests.
What are the government’s broader economic priorities?
Tinubu outlined five pillars for the next phase of the Federal Executive Council’s strategy: ensuring food affordability and stable energy prices; maintaining budget harmonisation and fiscal discipline; completing high‑impact projects and critical infrastructure; improving the policy and regulatory framework; and providing targeted household support while investing in human development. He stressed that success will be measured by completed projects, job creation and improved living standards, not merely by securing financing.
What does the President say about Nigeria’s credit standing?
Citing positive assessments from international rating agencies, Tinubu claimed that Nigeria’s external reserves, macro‑economic management and financial credibility have all improved, lowering borrowing costs and making the country more attractive to institutional investors.
In summary, the administration maintains that strategic borrowing is essential to fund infrastructure that will underpin a trillion‑dollar economy, while the NLC urges greater transparency and accountability over the nation’s debt trajectory.