President Bola Tinubu has defended his administration’s borrowing plans, saying criticism of new loans misses the real question facing Nigeria.
On Wednesday, former Vice President and African Democratic Congress (ADC) presidential candidate, Atiku Abubakar, asked Mr Tinubu to explain the Coastal Highway link to the $20.52 billion loan request.
Mr Abubakar said Mr Tinubu’s request for approval to borrow $20.52 billion and €1.045 billion has vindicated the warning he gave Nigerians on 12 October about a loan plan of up to $20 billion.
In a statement issued by Phrank Shaibu, Director of Strategic Communication of the ADC Presidential Campaign Council, Mr Abubakar said the President’s failure to identify the specific projects to be funded deepens concerns that the Lagos-Calabar Coastal Highway could be used to channel borrowed public money to Mr Tinubu’s political campaigners and favoured contractors.
Mr Abubakar said Mr Tinubu listed broad sectors in his request to the Senate but did not provide Nigerians with a project-by-project account of what the enormous borrowing will fund.
“There are no clear project details, costs, locations or contractors for the public to scrutinise,” he said.
Mr Abubarkar questioned the timing of the request, noting that it is coming barely 12 weeks before an election.
“How can any President, barely 12 weeks before an election, ask lawmakers to saddle Nigerians with more than $20 billion and €1 billion in debt without identifying the projects and their costs? Is this a development plan for Nigerians or a campaign financing scheme dressed up as infrastructure? Tinubu must answer,” Mr Abubakar said.
In his defence on Thursday, Mr Tinubu said the real question is not how much “we borrow, but what we build, what value we create and what future we leave behind.”
Mr Tinubu said his administration was shifting public borrowing away from financing short-term fiscal pressures towards investments that would generate economic returns, create jobs and expand opportunities for future generations.
He said the government was also pursuing longer-term financing arrangements to match the lifespan of infrastructure assets, reduce refinancing pressures and secure more competitive funding for productive investments.
“Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement,” he said.
He added that the nation’s economic ambition must be supported by responsible borrowing and investments that create lasting opportunities for future generations.
Flagship projects
The President identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of key commercial ports in Lagos as major projects expected to strengthen Nigeria’s productive capacity.
He said the projects, alongside investments in healthcare, education and vocational training, would connect economic regions, reduce logistics costs, unlock agricultural and industrial potential and attract private investment.
“We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography,” Mr Tinubu said.
On the Lagos-Calabar Coastal Highway, he said the project is expected to cut logistics costs along its corridor by 15 to 20 per cent.
It could add up to two per cent to Nigeria’s GDP through expanded 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.
Mr Tinubu said the administration’s ambition to build a $1 trillion economy by 2030 would require sustained infrastructure investment to support higher productivity, industrialisation and trade.
“We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size,” he said.
Mr Tinubu said a $1 trillion economy would not emerge by declaration alone but must be built through sustained investment, higher productivity, industrialisation, and trade, stressing that infrastructure development would be critical to achieving the target by 2030.
The President said improving economic indicators and growing international investor confidence are creating opportunities for Nigeria to attract long-term investment and expand critical infrastructure.
He said the economic reforms his administration introduced in May 2023 helped restore macroeconomic stability, strengthen public finances, and improve the country’s standing in international financial markets.
In the essay, Mr Tinubu said real Gross Domestic Product growth reached 4.43 per cent in the second quarter of 2026, while headline inflation fell to 14.63 per cent in September from 20.98 per cent a year earlier.
He also said 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 7 per cent.
The President attributed the 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, referring to the reforms.
Mr Tinubu said the gains have strengthened Nigeria’s ability to attract investment and finance projects that support long-term economic growth.
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“Confidence has a price; our cost of borrowing is going down, and the country’s risk premium has drastically decreased,” he said.
The President cited positive assessments by international credit rating agencies as evidence of improved confidence in the 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.
According to him, the improved standing could help Nigeria attract more institutional investors, secure longer-term financing and reduce borrowing costs.
He said Nigeria must convert renewed international confidence into capital expenditure, completed infrastructure and lasting economic benefits for citizens.
Priorities
He identified 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 stressed that the success of the current administration’s economic schemes would be measured by completed projects, increased investment, employment generation and improved living standards.
