President Bola Tinubu has defended his administration’s plan to secure fresh foreign loans, insisting that long-term investments in critical infrastructure are necessary to achieve Nigeria’s ambition of becoming a $1 trillion economy by 2030.
The President said the proposed borrowing would finance major infrastructure projects, including roads, electricity improvements and port upgrades, which he argued would stimulate economic growth, create jobs, expand businesses and improve opportunities for future generations.
Tinubu’s defence comes amid opposition from the Nigeria Labour Congress (NLC), which has questioned the Federal Government’s request for National Assembly approval to borrow $20.5 billion and €1.45 billion despite claims of increased government revenue following the removal of the petrol subsidy.
In a statement titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, the President argued that the focus should not be on the amount being borrowed but on the economic value the loans would generate.
“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind,” he said.
Tinubu identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and upgrades to major commercial ports in Lagos as some of the projects the government intends to finance.
He said the projects, alongside investments in healthcare, education and vocational training, would connect economic regions, reduce transportation costs, support agriculture and industrial activities, and attract private investment.
According to the President, the Lagos-Calabar Coastal Highway alone could reduce transportation costs along its route by 15 to 20 per cent and contribute up to two per cent to Nigeria’s Gross Domestic Product (GDP) through increased trade, tourism and industrial activities.
He projected that the highway would generate about 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs in logistics, building materials and related sectors.
“We are building more than highways. We are opening economic corridors, connecting markets, supporting industries and reshaping Nigeria’s economic geography,” he said.
The President maintained that Nigeria could not achieve its $1 trillion economic target by 2030 without significant improvements in infrastructure.
“We cannot build a $1 trillion economy with infrastructure designed for an economy a fraction of that size,” he added.
Tinubu highlights economic gains from reforms
Defending his administration’s economic record, Tinubu pointed to improvements in key economic indicators since the introduction of major reforms in May 2023.
He listed the removal of the petrol subsidy, unification of the foreign exchange market, tax reforms and measures to address inflation as policies that had helped strengthen the economy and improve government finances.
According to the President, Nigeria’s economy grew by 4.43 per cent in the second quarter of 2026, while headline inflation declined to 14.63 per cent in September from 20.98 per cent in the corresponding period of the previous year.
He also disclosed that the country’s gross external reserves stood at $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves.
Tinubu further said Nigeria’s tax-to-GDP ratio had increased to 12.5 per cent from seven per cent, while net allocations from the Federation Account Allocation Committee (FAAC) rose by 44 per cent, from ₦15.2 trillion in 2024 to ₦21.9 trillion in 2025.
He argued that the improvements had strengthened investor confidence, made Nigeria more attractive to foreign investors and enhanced its ability to secure loans on more favourable terms.
The President cited positive assessments by international credit rating agencies, Nigeria’s return to Frontier Market status and its successful Eurobond issuance as evidence of growing confidence in the country’s economy.
“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 explained that the government was seeking longer-term financing arrangements that would allow repayment periods to correspond with the useful lifespan of the projects being funded.
He said such arrangements would ease the pressure of frequent debt repayments and enable the country to secure more favourable borrowing conditions.
However, the President acknowledged the need for fiscal discipline, disclosing that public debt stood at 35.75 per cent of GDP in the second quarter of 2026, while debt servicing consumed approximately 65 per cent of government revenue in the first half of the year.
He added that the Federal Executive Council’s economic strategy included avoiding the use of money creation to finance budget deficits and preventing spending commitments that were not backed by available funds during the pre-election period.
NLC questions fresh borrowing despite increased revenue
The Nigeria Labour Congress, however, has challenged the Federal Government to justify its plan to secure additional foreign loans despite claims that government revenue has increased following the removal of the petrol subsidy.
Speaking on Channels Television’s The Morning Brief, NLC President, Joe Ajaero, questioned the continued borrowing from international financial institutions, including the International Monetary Fund (IMF) and the World Bank.
“If you come out to tell us that subsidy is gone, that you are making more money and then you are giving more money to states, what is the justification for continually borrowing from the International Monetary Fund and the World Bank and other agencies when there is enough money?” he asked.
Ajaero also argued that the increase in international crude oil prices should prompt the government to reconsider its borrowing plans.
He noted that the 2026 budget was based on an oil price benchmark of $70 per barrel, while crude oil prices had risen above $100 per barrel amid tensions involving the United States and Iran.
“If the 2026 budget was prepared with crude oil price benchmarked at $70 per barrel and now sells above $100 per barrel due to the US-Iran crisis, should this country still be taking loans?” he asked.
The labour leader questioned the implications of additional borrowing for Nigeria’s debt burden, arguing that increased oil earnings and higher revenue allocations to oil-producing states should compel the government to explain the need for fresh loans.
Ajaero, however, clarified that the NLC had no authority to approve or reject government borrowing, noting that such decisions rested with the relevant government institutions.
He urged Nigerians and relevant agencies to demand greater transparency and accountability from the Federal Government over its borrowing plans.
Tinubu, meanwhile, maintained that the success of the proposed borrowing programme should ultimately be measured by the completion of projects, value for money and improvements in the living conditions of Nigerians.
“Securing financing is only the beginning. The real achievement lies in completing projects, delivering value for money, and improving Nigerians’ lives,” he said.
