Tinubu Defends Fresh Borrowing, Says Loans Will Create Future Opportunities

President Bola Tinubu has defended his administration’s plans to secure additional external loans, arguing that borrowing should be assessed by the value of the projects financed and the economic opportunities they create for Nigerians.

In a statement published on Thursday by his spokesman, Bayo Onanuga, the President said the proposed investments were designed to strengthen the country’s productive capacity, improve connectivity and support long-term economic growth.

In an essay titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, Tinubu responded to criticism of the government’s borrowing plans, particularly from opposition leaders.

He argued that the central consideration should be how borrowed funds were deployed, the value generated and the benefits left for future generations.

Tinubu identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway and Trans-Sahara Superhighway among the major infrastructure projects expected to improve transportation and connect economic centres.

He also highlighted planned electricity grid upgrades and the modernisation of key commercial ports in Lagos, saying such investments could reduce logistics costs, strengthen trade and attract private investment.

According to the President, improvements in transport and energy infrastructure would help unlock agricultural and industrial potential while making it easier for businesses to move goods and access markets.

He added that investments in healthcare, education and vocational training were also essential to building a skilled workforce and expanding opportunities for young Nigerians.

The defence of the borrowing plan comes as Tinubu seeks legislative approval for external financing valued at approximately 20.52 billion dollars and 1.045 billion euros under the Federal Government’s 2026–2027 Supplementary External Borrowing Plan.

The proposed financing covers several sectors, including transportation, agriculture, healthcare, education, water supply, security and employment generation. The request has been referred to relevant National Assembly committees for consideration.

The Federal Government has maintained that the projects were selected following technical and economic evaluations and are intended to address infrastructure gaps while supporting national development.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, has also defended the proposed borrowing, arguing that investments in productive assets could generate economic benefits that outweigh their financing costs.

Oyedele said the plan included funding from multilateral and bilateral development partners, as well as commercial sources, with projects expected to benefit federal and subnational governments.

He clarified that submitting the borrowing plan did not mean the entire amount had already been borrowed or would necessarily be drawn down in full.

The proposed borrowing has renewed debate over Nigeria’s debt obligations, the cost of financing public projects and the government’s ability to ensure that investments deliver sufficient economic returns.

Critics of increased borrowing have raised concerns about the country’s debt burden and the need for transparency in project selection, financing terms and implementation.

The administration, however, argues that substantial investment is necessary to address longstanding infrastructure deficiencies and create conditions for sustained economic growth.

Tinubu’s position is that the value of borrowing depends on whether the resulting infrastructure and public investments improve productivity, support businesses and expand opportunities for Nigerians over the long term.