Tinubu Defends $20.52bn External Borrowing, Says Nigeria Must Invest in Infrastructure

President Bola Tinubu has defended his administration’s proposed external borrowing, insisting that loans should be assessed based on the infrastructure they deliver, the economic value they generate and their long-term benefits to Nigerians.

The President made the argument in an essay titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” published on October 29, 2026, amid growing criticism of the Federal Government’s borrowing plans and concerns over Nigeria’s rising public debt.

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Tinubu argued that borrowing should not be judged solely by the amount involved but by the productive assets and opportunities created with the funds.

“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.

Tinubu Lists Major Infrastructure Projects

The President 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 key projects expected to strengthen Nigeria’s economy.

According to him, the investments would improve transportation, reduce logistics costs, connect markets, attract private investors and support industrial development.

Tinubu said the Lagos-Calabar Coastal Highway could reduce logistics costs along its corridor by 15 to 20 per cent and potentially contribute up to two per cent to Nigeria’s Gross Domestic Product through increased trade, tourism and industrial activities.

He also projected that the highway could generate about 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, materials supply and related services.

“We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” he said.

Tinubu maintained that achieving his administration’s ambition of building a $1 trillion economy by 2030 would require infrastructure capable of supporting increased production, trade and investment.

President Cites Economic Improvements

The President also defended the economic reforms introduced since May 2023, including petrol subsidy removal, exchange rate unification and tax reforms.

He said the policies had helped improve public finances, strengthen macroeconomic stability and restore investor confidence.

Tinubu cited real GDP growth of 4.43 per cent in the second quarter of 2026 and a decline in headline inflation to 14.63 per cent in September, compared with 20.98 per cent a year earlier.

He further stated that Nigeria’s gross external reserves stood at $55.1 billion as of October 9, while the country’s tax-to-GDP ratio had risen to 12.5 per cent from seven per cent.

According to him, improved economic indicators and positive assessments by international credit rating agencies could help Nigeria secure longer-term financing at lower borrowing costs.

$20.52bn Loan Proposal Raises Debt Concerns

Tinubu’s defence comes as the administration seeks Senate approval for a proposed external borrowing package of $20.52 billion and €1.05 billion for 2026 and 2027.

The proposed financing is intended to support infrastructure and development projects across the country.

However, former Vice President Atiku Abubakar has called on the government to publish detailed, project-by-project information showing how the proposed loans would be spent.

The concerns come amid rising public debt. Data from the Debt Management Office showed that Nigeria’s total public debt increased to ₦166.79 trillion as of June 30, 2026, from ₦159.35 trillion at the end of March.

Tinubu maintained that his administration was shifting borrowing towards investments capable of generating economic returns, creating jobs and delivering long-term benefits.

The debate over the proposed loans is expected to continue as lawmakers consider the request and Nigerians demand greater transparency and accountability in public borrowing.