It’s not how much we borrow, but what we build — Tinubu
*Adds Lagos-Calabar, Sokoto-Badagry highways, power, ports’re drivers of $1trn economy *NLC demands justification for $20.5bn, €1.45bn loans
By Johnbosco Agbakwuru and Olayinka Ajayi
ABUJA — President Bola Tinubu has defended his administration’s external borrowing plans, saying Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and modernisation of key commercial ports in Lagos among others would strengthen Nigeria’s productive capacity.
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According to him, the loans will finance critical infrastructure and investments capable of expanding economic opportunities for future generations.
The President’s position came as the Nigeria Labour Congress, NLC, faulted his request to the National Assembly for approval to obtain fresh external loans of $20.5 billion and €1.45 billion, questioning the justification for continued borrowing despite claims of increased government revenue.
In a statement titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” Tinubu said the focus should be on the economic value generated by borrowed funds rather than the amount borrowed.
“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.
The President identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and modernisation of key commercial ports in Lagos as major projects expected to strengthen Nigeria’s productive capacity.
He said investments in healthcare, education and vocational training will complement the infrastructure projects by connecting economic regions, reducing logistics costs, unlocking agricultural and industrial potential and attracting private investment.
According to him, the Lagos-Calabar Coastal Highway is expected to reduce logistics costs along its corridor by 15 to 20 per cent and potentially add up to two per cent to Nigeria’s Gross Domestic Product, GDP, through increased trade, tourism and industrial activity.
The project is also projected to generate about 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, materials and related services.
Tinubu said: “We are not simply building highways, we are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography.”
He argued that achieving his administration’s ambition of building a $1 trillion economy by 2030 will require sustained investment in infrastructure to support productivity, industrialisation and trade.
“We cannot build a $1 trillion economy with infrastructure designed for an economy a fraction of that size,” he said.
Cites economic indicators
The President said reforms introduced since May 2023 had helped restore macro-economic stability, strengthen public finances and improve Nigeria’s standing in international financial markets.
He 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 from 20.98 per cent a year earlier.
He added that gross external reserves rose to $55.1 billion as of October 9, 2026, including about $46 billion in net reserves, while the tax-to-GDP ratio increased to 12.5 per cent from seven per cent.
Tinubu attributed the reported improvements to measures including petrol subsidy removal, exchange rate unification, tax reforms and coordinated efforts to tackle inflation.
“The decisions taken since 2023 were difficult but necessary,” he said.
According to him, the reforms had strengthened Nigeria’s capacity to attract investment and finance projects that support long-term economic growth.
“Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased,” he said.
The President cited positive assessments by international credit rating agencies as evidence of improving investor confidence.
“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.
He argued that the improved standing could help Nigeria attract institutional investors, secure longer-term financing and reduce borrowing costs.
Tinubu said the government was shifting public borrowing away from financing short-term fiscal pressures towards investments expected to generate economic returns, create jobs and expand opportunities for future generations.
He added that longer-term financing arrangements would help match repayment periods with the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding for productive investments.
Lists economic priorities
The President said Nigeria must convert renewed international confidence into capital expenditure, completed infrastructure and lasting benefits for citizens.
He outlined five priorities for the next phase of the Federal Executive Council’s economic strategy: food affordability and energy price stability; budget harmonisation and fiscal discipline; completion of high-impact projects and investment in critical infrastructure; an improved economic policy framework and regulatory efficiency; and targeted household support alongside investment in human development.
He said the administration’s economic performance would ultimately be measured by completed projects, increased investment, job creation and improved living standards.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” he said.
The President added that Nigeria’s economic ambitions must be backed by responsible borrowing and investments that create lasting opportunities for future generations.
NLC faults fresh external loans
However, NLC President, Mr. Joe Ajaero, questioned the justification for the proposed loans, particularly against the backdrop of the Federal Government’s claims of increased revenue following the removal of petrol subsidy.
Speaking on Channels Television’s The Morning Brief yesterday, Ajaero challenged the government to explain why it continued to seek loans from international financial institutions despite the reported increase in revenue.
“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.
The labour leader argued that continued borrowing is worsening the country’s debt burden and questioned whether loans from international financial institutions necessarily served Nigeria’s best interests.
He also cited rising crude oil prices, which he attributed to tensions in the Middle East, as another reason government should reconsider its borrowing plans.
“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?” Ajaero asked.
He argued that increased oil earnings and revenue accruing to oil-producing states should prompt the Federal Government to explain why additional external borrowing remained necessary.
Ajaero, however, clarified that the NLC has no authority to approve or reject government loans, noting that such decisions rested with the relevant government institutions.
He urged Nigerians and relevant agencies to demand greater accountability from the Federal Government over its borrowing plans.
Vanguard News
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