President Tinubu Defends $21.7 Billion Loan for Infrastructure

President Bola Ahmed Tinubu defended plans to obtain approximately $21.7 billion in external loans to transform Nigeria into a $1 trillion economy by 2030. In an essay titled 'From reforms to delivery: Our infrastructure investment and growth strategy,' Tinubu argued that borrowing must shift from short-term fiscal pressure toward long-term productive investments. He stated that Nigeria cannot build a trillion-dollar economy with infrastructure designed for a fraction of that size.

The financing framework targets critical projects, including the Lagos-Calabar Coastal Highway, the Sokoto-Badagry Superhighway, the Trans-Sahara Superhighway, electricity grid upgrades, and the modernization of Lagos commercial ports. Tinubu claimed the Lagos-Calabar project alone could create 250,000 jobs and add 2% to the GDP. To support these plans, the government is utilizing a $5 billion facility from the World Bank Group.

Tinubu cited improved macroeconomic indicators as evidence of successful reforms, noting that headline inflation fell to 14.63% in September and real GDP growth reached 4.43% in the second quarter of 2026. However, the Nigeria Labour Congress challenged the necessity of the loans. NLC President Joe Ajaero questioned why the government continues to borrow from the International Monetary Fund and World Bank despite increased revenues from the removal of petrol subsidies and rising crude oil prices. Finance Minister Taiwo Oyedele countered that loans should be judged by the assets and economic returns they create.