Tinubu defends new loans, says funds will build future opportunities

President Bola Tinubu has defended Nigeria's recent loans from international institutions and banks, asserting that the funds will be used to build infrastructure that will create economic opportunities for future generations. In a statement via his spokesman, Bayo Onanuga, Tinubu addressed criticisms, particularly from opposition leaders, asserting that the focus should not be on the amount borrowed but on the projects undertaken and the benefits generated.

Key projects cited include the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Saharan Superhighway, electricity grid upgrades, and modernisation of key commercial ports in Lagos. These projects, among others in healthcare, education, and vocational training, are expected to enhance Nigeria's productivity, reduce logistics costs, unleash agricultural and industrial potential, and attract private investments.

The Lagos-Calabar Highway, for instance, is projected to cut logistics costs by 15-20%, potentially adding up to two percent to Nigeria's GDP through increased trade, tourism, and industrial activity, while generating around 100,000 direct jobs in construction and engineering, alongside over 150,000 indirect jobs in logistics, materials, and related services.

Tinubu emphasized that these investments are part of the administration's goal to build a $1 trillion economy by 2030, arguing that existing infrastructure is insufficient for such an ambitious economic target. The President linked these investments to recent economic reforms introduced in May 2023, which have led to macroeconomic stability, strengthened public finances, and improved Nigeria's standing in international financial markets.

Economic indicators such as Real GDP growth (4.43% in Q2 2026), reduced headline inflation (14.63% in September 2026), and a growing external reserve ($55.1 billion as of Oct 9, 2026) underscore the administration's achievements. Tinubu noted that these reforms, including petrol subsidy removal, exchange rate unification, tax reforms, and efforts to curb inflation, were challenging but necessary.

He highlighted that improving economic indicators and growing investor confidence have led to reduced borrowing costs and lower country risk premiums. International credit rating agencies have positively assessed Nigeria, recognizing stronger external reserves, improved macroeconomic management, and enhanced financial credibility.

The administration is refocusing public borrowing from short-term fiscal needs to long-term, high-return investments, aiming to secure more competitive funding aligned with the lifespan of infrastructure assets. Tinubu outlined five priorities for the upcoming economic strategy: food affordability and energy price stability, budget harmonisation and fiscal discipline, completing high-impact projects, improving economic policy framework and regulatory efficiency, and targeted household support alongside investments in human development.

He stressed that securing financing is not the goal; delivering completed projects with tangible value and improving Nigerians' lives is.