President Bola Ahmed Tinubu has said Nigeria must redirect public borrowing towards productive investments in infrastructure rather than using loans to finance consumption or bridge short-term fiscal gaps.
The President said his administration was shifting the country’s borrowing strategy towards long-term capital projects capable of generating economic growth, creating employment opportunities and increasing government revenue.
Tinubu made this known in an article titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, where he explained that the economic reforms introduced since 2023 had created a foundation for increased investment in critical infrastructure.
According to him, the removal of petrol subsidy, unification of the exchange rate, modernisation of the tax framework and measures to control inflation had helped restore macroeconomic stability and improve government revenue.
He disclosed that Nigeria’s real Gross Domestic Product (GDP) growth reached 4.43 per cent in the second quarter of 2026, compared with 2.74 per cent in 2023, while headline inflation declined to 14.63 per cent in September 2026 from 20.98 per cent recorded a year earlier.
The President also said the country’s gross external reserves stood at $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves.
Tinubu noted that the improved economic indicators had created an opportunity for the government to redirect borrowing towards infrastructure development while maintaining fiscal discipline.
He said, “Nigeria is fundamentally changing the purpose of public borrowing: from financing short-term fiscal pressures to investing in assets that will transform the economy for generations.”
The President maintained that borrowing should be tied to projects capable of generating long-term economic returns rather than meeting immediate government spending obligations.
“Borrowing to build, not to bridge, not for consumption,” he stated.
He added that the administration was increasingly directing new borrowing towards productive capital investments, including roads, ports, railways and power infrastructure.
“Every Naira and every dollar raised goes to assets that create value, and that value repays the debt. This is how Nigeria will reach the objective of a USD 1 trillion economy by 2030: not through consumption, but through investment in the infrastructure that makes growth possible,” he said.
Tinubu explained that the administration’s infrastructure programme included major projects such as the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, improvements to the electricity grid and upgrades to major commercial ports in Lagos.
According to him, the projects are expected to connect economic regions, unlock agricultural and industrial opportunities, reduce transportation costs, attract private investments and create hundreds of thousands of direct and indirect jobs.
He described the infrastructure programme as an effort to reshape Nigeria’s economic geography and strengthen the country’s productive capacity.
“This is not simply about building infrastructure. It is about reshaping Nigeria’s economic geography, unlocking new sources of growth and creating the productive capacity to achieve a USD 1 trillion economy,” the President said.
On the Lagos-Calabar Coastal Highway, Tinubu disclosed that Lot 2 was reported to be more than 80 per cent complete as of August 2026, while construction works along the Calabar-Akwa Ibom section had exceeded 30 per cent completion.
He said the economic benefits of the projects would extend beyond construction activities to businesses, farms, factories and communities connected by the infrastructure.
“We are building more than highways. We are opening economic corridors, connecting markets, supporting industries and reshaping Nigeria’s economic geography,” he stated.
The President further projected that the Lagos-Calabar Coastal Highway could reduce logistics costs by 15 to 20 per cent along the corridor and contribute up to two per cent to Nigeria’s GDP through increased industrial activities, trade and tourism.
He added that the project was expected to generate about 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, materials and related services.
On debt management, Tinubu said the government was extending the maturity profile of its borrowing to favour long-term financing that matches the lifespan of infrastructure assets.
He noted that public debt stood at 35.75 per cent of GDP in the second quarter of 2026, while debt servicing accounted for approximately 65 per cent of government revenue in the first half of the year.
He said these figures underscored the importance of maintaining fiscal discipline and ensuring that borrowed funds generated measurable economic returns.
“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind,” he stated.
Tinubu also disclosed that the Federal Executive Council’s economic strategy ruled out deficit monetisation and unfunded commitments during the pre-election period.
On international investor confidence, the President highlighted positive rating actions by global credit rating agencies, including S&P, Fitch and Moody’s, as well as Nigeria’s restoration to Frontier Market status by FTSE Russell.
He also referenced Nigeria’s removal from the Financial Action Task Force (FATF) grey list in October 2025, describing the development as part of the country’s improved international financial standing.
According to him, these developments could provide Nigeria with access to more competitive financing, longer loan maturities and increased participation in infrastructure development.
“The message from international investors, global banks and development institutions is unequivocal: Nigeria has undertaken the reforms; now is the time to invest, build and deliver at scale,” he said.
Tinubu, however, stressed that securing financing alone would not be enough, insisting that the government must prioritise project completion, accountability and value for money.
“Securing financing is only the beginning. The real achievement lies in completing projects, delivering value for money, and improving Nigerians’ lives. Every Naira borrowed must be justified by the economic value it creates, and we must measure every project by its results,” he stated.
He added that Nigeria must take advantage of renewed international confidence by translating available capital into completed infrastructure, job creation and improved living standards.
The President identified food affordability, energy price stability, fiscal discipline, completion of critical infrastructure, regulatory efficiency and investment in human development as key priorities for the next phase of the administration’s economic programme.
He maintained that the country’s ambition of building a $1 trillion economy by 2030 would depend on sustained investment in infrastructure, industrialisation, trade and increased productivity.
Tinubu said, “A $1 trillion economy will not emerge through declarations alone. We must build it through investment, higher productivity, industrialisation and trade.”
He further emphasised that the government must ensure that infrastructure investments create opportunities for future generations.
“We are not borrowing against our children’s future. We must invest responsibly to expand their opportunities,” he added.