President Bola Tinubu has defended his administration’s plan to secure additional foreign loans, arguing that the economic benefits of borrowed funds should be judged by the infrastructure and opportunities they create rather than the amount obtained.
The President said proposed investments in major infrastructure projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and the modernisation of commercial ports in Lagos, would strengthen Nigeria’s productive capacity.
He maintained that the loans would support critical infrastructure and investments capable of creating economic opportunities for present and future generations.
Tinubu’s position comes amid criticism from the Nigeria Labour Congress (NLC), which has questioned the Federal Government’s request to the National Assembly for approval to obtain fresh external loans of $20.5bn and €1.45bn.
In a statement titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, the President argued that the central issue should be what the country achieves with borrowed money.
He said the focus should be on the value created, projects completed and the economic future secured for Nigerians.
Tinubu identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of major commercial ports in Lagos as projects expected to improve the country’s productive capacity.
He added that investments in healthcare, education and vocational training would complement the infrastructure programme by connecting economic centres, reducing transportation costs, improving agricultural and industrial activities and attracting private-sector investment.
According to the President, the Lagos-Calabar Coastal Highway is projected to reduce logistics costs along its route by between 15 and 20 per cent and potentially contribute up to two per cent to Nigeria’s Gross Domestic Product through increased trade, tourism and industrial activities.
The project is also expected to create approximately 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect employment opportunities in logistics, materials supply and related services.
Tinubu maintained that the government was not simply constructing roads but developing economic corridors that would connect markets, encourage industrial growth and reshape economic activities across the country.
He further argued that achieving his administration’s target of building a $1tn economy by 2030 would require sustained investment in infrastructure.
According to him, Nigeria cannot achieve such economic ambitions with infrastructure designed for a much smaller economy.
Tinubu cites improvements in economic indicators
The President also pointed to economic indicators which he said reflected the impact of reforms introduced since May 2023.
He cited real GDP growth of 4.43 per cent in the second quarter of 2026 and a reduction in headline inflation to 14.63 per cent in September, compared with 20.98 per cent during the corresponding period of the previous year.
He also disclosed that Nigeria’s gross external reserves had increased to $55.1bn as of October 9, 2026, including approximately $46bn in net reserves.
The President further stated that the country’s tax-to-GDP ratio had risen from seven per cent to 12.5 per cent.
Tinubu attributed these developments to economic measures introduced by his administration, including the removal of petrol subsidy, exchange rate unification, tax reforms and coordinated efforts to control inflation.
He described the decisions taken since 2023 as difficult but necessary, arguing that they had improved Nigeria’s ability to attract investments and finance long-term development projects.
The President also claimed that Nigeria’s borrowing costs and country risk premium had declined, citing positive assessments from international credit rating agencies and financial market institutions.
According to him, these assessments reflected improvements in foreign reserves, economic management and the country’s financial credibility.
He argued that stronger investor confidence could help Nigeria attract institutional investments, obtain longer-term financing and reduce the cost of borrowing.
Tinubu said his administration was moving away from using public borrowing mainly to address short-term fiscal pressures towards financing projects expected to generate economic returns, create employment and expand opportunities.
He added that longer-term financing arrangements would help align loan repayment periods with the lifespan of infrastructure projects, reduce refinancing pressure and secure more favourable funding conditions.
Government outlines economic priorities
The President said Nigeria must translate improved international confidence into completed infrastructure projects, increased investments and tangible benefits for citizens.
He outlined five major priorities for the next phase of the Federal Executive Council’s economic strategy.
These include improving food affordability and stabilising energy prices; harmonising budgets and strengthening fiscal discipline; completing major infrastructure projects; improving economic policies and regulatory efficiency; and providing targeted household support alongside investments in human development.
Tinubu maintained that the performance of his administration would ultimately be measured by completed projects, employment opportunities, increased investments and improvements in living standards.
He stressed that securing loans alone should not be regarded as an achievement, adding that the real objective was to complete projects and improve the lives of Nigerians.
NLC questions continued external borrowing
Meanwhile, NLC President, Joe Ajaero, has challenged the Federal Government to explain why it continues to seek foreign loans despite claims that government revenue has increased following the removal of petrol subsidy.
Speaking on Channels Television’s The Morning Brief on Thursday, Ajaero questioned the justification for additional borrowing from international financial institutions, including the International Monetary Fund and the World Bank.
He argued that Nigerian workers had endured difficult economic conditions without adequate intervention before organised labour threatened industrial action to secure relief.
Ajaero described the recently negotiated workers’ transport allowance as an important achievement, considering the prevailing economic challenges.
He also questioned why the government would continue borrowing despite claims of increased revenue and higher allocations to state governments.
The labour leader further referenced rising international crude oil prices, which he linked to tensions in the Middle East, as another reason for the government to reconsider its borrowing plans.
He questioned whether additional loans were necessary when crude oil prices had reportedly risen above the $70 per barrel benchmark used in preparing the 2026 budget, reaching more than $100 per barrel amid the US-Iran crisis.
Ajaero argued that increased oil earnings and revenue accruing to oil-producing states should prompt the government to provide a clearer explanation for its borrowing plans.
He, however, clarified that the NLC does not have the authority to approve or reject government borrowing, noting that such decisions are the responsibility of the relevant government institutions.
The labour leader called on Nigerians and relevant agencies to demand greater accountability over the Federal Government’s external borrowing plans.
Source: Vanguard
