President Bola Tinubu has defended his administration’s plan to secure additional foreign loans, saying Nigeria needs long-term investment in infrastructure to achieve its ambition of becoming a $1tn economy by 2030.

Tinubu said the proposed loans would finance roads, improve electricity supply, upgrade ports, and support other projects expected to create jobs, expand businesses, and provide opportunities for future generations.

In a statement titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, the President said the focus should be on what borrowed funds would achieve rather than the amount the government intended to borrow.

“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind,” he said.

Tinubu listed the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements, and upgrades to major commercial ports in Lagos among the projects the government plans to finance.

He said the projects, alongside investments in healthcare, education, and vocational training, would connect economic regions, reduce the cost of transporting goods, support agriculture and industry, and attract private investment.

The President projected that the Lagos-Calabar Coastal Highway alone could reduce transportation costs along its route by 15 to 20 per cent and contribute up to two per cent to Nigeria’s Gross Domestic Product (GDP) through increased trade, tourism, and industrial activities.

He said the highway would generate about 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs in logistics, building materials, and related services.

“We are building more than highways. We are opening economic corridors, connecting markets, supporting industries and reshaping Nigeria’s economic geography,” he said.

Tinubu argued that Nigeria needed better infrastructure to achieve its target of a $1tn economy by 2030.

“We cannot build a $1 trillion economy with infrastructure designed for an economy a fraction of that size,” he added.

The President also highlighted improvements in some economic indicators since his administration introduced major reforms in May 2023.

He listed the removal of the petrol subsidy, the unification of exchange rates, tax reforms, and efforts to control inflation as measures that had helped improve the economy and government finances.

According to him, Nigeria’s economy grew by 4.43 per cent in the second quarter of 2026, while headline inflation fell to 14.63 per cent in September, compared with 20.98 per cent in the corresponding period last year.

He said the country’s gross external reserves stood at $55.1bn as of October 9, 2026, including approximately $46bn in net reserves.

Tinubu also said Nigeria’s tax-to-GDP ratio had increased from seven per cent to 12.5 per cent, while net allocations from the Federation Account Allocation Committee (FAAC) rose by 44 per cent, from ₦15.2tn in 2024 to ₦21.9tn in 2025.

He said the improvements had made Nigeria more attractive to foreign investors and enabled the country to secure loans at more favourable rates.

The President cited positive assessments by international credit rating agencies, Nigeria’s return to Frontier Market status, and its successful Eurobond issuance as evidence of growing 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 added that the government was seeking longer-term loans with repayment periods aligned with the lifespan of the projects they would finance.

According to him, this approach would ease the pressure of frequent loan repayments and help the country secure more favourable borrowing terms.

However, Tinubu acknowledged the need to exercise spending discipline, noting 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 the Federal Executive Council’s economic plan included avoiding the printing of money to finance budget deficits and preventing spending commitments unsupported by available funds during the pre-election period.