Tinubu Responds to Loan Criticism, Says Investments Will Benefit Future Generations

President Bola Tinubu has strongly replied to critics, especially from opposition leaders, about new loans Nigeria has taken from international banks and institutions.

In an essay titled "From reforms to delivery: Our infrastructure investment and growth strategy," which will be published on Nigerian news platforms, President Tinubu wrote: "The real question is not how much we borrow, but what we build, what value we create and what future we leave behind."

The President highlighted key projects like the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, upgrades to the electricity grid, and the modernization of important commercial ports in Lagos. These projects are expected to boost Nigeria’s production capacity.

He mentioned that these projects, along with investments in healthcare, education, and vocational training, would connect different economic regions, lower logistics costs, unlock agricultural and industrial potential, and draw in private investment.

The Lagos-Calabar Coastal Highway is expected to reduce logistics costs along its route by 15 to 20 percent. It could increase Nigeria’s GDP by up to two percent through more trade, tourism, and industrial activities.

This project is also expected to create about 100,000 direct jobs in construction and engineering, plus over 150,000 indirect jobs in logistics, materials, and related services.

"We are not simply building highways. We are opening economic corridors, connecting markets, unlocking industries and reshaping Nigeria’s economic geography," the President said.

He added that the goal to build a $1 trillion economy by 2030 will need continuous investment in infrastructure to support better productivity, industrialization, and trade.

"We cannot build a USD 1 trillion economy with infrastructure designed for an economy a fraction of that size," said President Tinubu.

He noted that better economic indicators and growing international investor confidence are creating chances for Nigeria to attract long-term investment and expand critical infrastructure.

The President stated that the economic reforms his government introduced in May 2023 have helped restore macroeconomic stability, strengthen public finances, and improve Nigeria’s position in international financial markets.

He mentioned that a $1 trillion economy would not just happen by saying it but must be achieved through ongoing investment, improved productivity, industrialization, and trade. He stressed that developing infrastructure is essential to meet the target by 2030.

In the article, President Tinubu reported that real Gross Domestic Product growth reached 4.43 percent in the second quarter of 2026, while inflation fell to 14.63 percent in September from 20.98 percent a year earlier.

He also said that gross external reserves rose to $55.1 billion as of October 9, 2026, which includes about $46 billion in net reserves, while the tax-to-GDP ratio increased to 12.5 percent from seven percent.

The President pointed out that real GDP growth hit 4.43 percent in the second quarter of 2026, while inflation dropped to 14.63 percent in September from 20.98 percent a year earlier.

He credited the improvements to actions like removing the petrol subsidy, unifying the exchange rate, changing tax policies, and coordinated efforts to manage inflation.

"The decisions taken since 2023 were difficult but necessary," he said about the reforms.

President Tinubu stated that these gains have improved Nigeria’s ability to attract investment and fund projects that support long-term growth.

"Confidence has a price; our cost of borrowing is going down, and the country risk premium has drastically decreased," he said.

He pointed to positive evaluations by international credit rating agencies as proof 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," President Tinubu said.

According to him, the improved position could help Nigeria attract more institutional investors, secure longer-term financing, and lower borrowing costs.

He said the government is moving public borrowing from short-term needs to investments that will yield economic returns, create jobs, and expand opportunities for future generations.

The President added that the government is looking for longer-term financing to match the lifespan of infrastructure assets, reduce refinancing pressures, and secure better funding for productive investments.

President Tinubu stressed that Nigeria must turn new international trust into capital projects, completed infrastructure, and lasting benefits for the people.

He identified five key areas for the next phase of the Federal Executive Council’s economic plan: making food affordable and stabilizing energy prices; harmonizing the budget and ensuring fiscal discipline; completing impactful projects and investing in critical infrastructure; improving economic policy and regulatory efficiency; and providing targeted support to households while investing in human development.

The President emphasized that the success of his administration’s economic plans would be based on completed projects, increased investments, job creation, and better living standards.

"Securing financing is not the achievement. Completing the project, delivering value and improving the lives of Nigerians is the achievement," he said.

He concluded that Nigeria’s economic goals must be backed by responsible borrowing and investments that create lasting opportunities for future generations.