President Bola Tinubu has defended his administration’s fresh external borrowing plans, saying the loans will finance critical infrastructure projects and boost Nigeria’s economic growth.
In a statement titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, Tinubu argued that the value generated from borrowed funds matters more 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 commercial ports in Lagos as major projects expected to strengthen the economy.
He said the investments would reduce transportation costs, improve trade, boost agricultural and industrial activities, attract private investment and create jobs.
Tinubu added that the Lagos-Calabar Coastal Highway alone could reduce logistics costs along its route by 15 to 20 percent and contribute up to two percent to Nigeria’s Gross Domestic Product (GDP).
He maintained that sustained infrastructure investment was necessary to achieve his administration’s target of building a $1 trillion economy by 2030.
The President also cited improved economic indicators, including 4.43 percent GDP growth in the second quarter of 2026, a decline in inflation to 14.63 percent in September and an increase in external reserves to $55.1 billion as of October 9.
He said the government was shifting borrowing towards long-term investments capable of generating economic returns rather than financing short-term fiscal pressures.
However, the Nigeria Labour Congress (NLC) has questioned the need for additional external loans, following the Federal Government’s request for legislative approval to secure $20.52 billion and €1.45 billion in fresh borrowing.
NLC President, Joe Ajaero, challenged the government to explain why it continued to seek foreign loans despite increased revenue from petrol subsidy removal and higher allocations to states.
Speaking on Channels Television’s The Morning Brief, Ajaero also questioned the borrowing plans amid rising crude oil prices, arguing that increased oil revenue should prompt the government to reconsider further loans.
He, however, acknowledged that the NLC had no authority to approve or reject government borrowing, urging Nigerians and relevant institutions to demand accountability over the proposed loans.
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