President Bola Ahmed Tinubu says his administration is redirecting Nigeria’s public borrowing from financing short-term fiscal obligations and consumption towards productive infrastructure investments.
This initiative he said forms part of efforts to strengthen the country’s economic capacity and achieve a US$1 trillion economy by 2030.
The President said “the borrowing strategy prioritises critical infrastructure, including roads, ports, railways and electricity, while emphasising fiscal discipline and measurable returns on public investment.”
In an article personally authored by him, titled “From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy,” President Tinubu explained that the shift towards productive borrowing was designed to stimulate economic growth, create employment opportunities and deliver lasting economic benefits for future generations.
“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. This shift is taking place with public debt at 35.75% of GDP in Q2 2026 and debt service at about 65% of revenue in H1 2026, underscoring why investment must remain anchored in fiscal discipline,” he stated.
The President stressed that the Federal Executive Council had established fiscal guidelines to prevent deficit monetisation and unfunded financial commitments during the pre-election period.
“The Federal Executive Council economic strategy is clear on this point: no deficit monetisation and no unfunded commitments during the pre-election period. At the heart of this disciplined shift towards productive borrowing are our administration’s legacy projects,” he said.
He identified the Lagos–Calabar Coastal Highway, Sokoto–Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and the modernisation of major commercial ports in Lagos as priority infrastructure projects under the administration’s investment programme.
According to him, the projects are designed to connect economic regions, unlock agricultural and industrial opportunities, reduce transportation costs, attract private capital and generate substantial employment.
“Together with other priority projects, the rehabilitation of key hospitals, and investment in education and vocational training, these investments are game-changing. They will connect entire economic regions, unlock agricultural and industrial potential, reduce logistics costs, attract private investment and create hundreds of thousands of direct and indirect employment opportunities over time,” he added.
President Tinubu disclosed that progress had been recorded on the Lagos–Calabar Coastal Highway, with Lot 2 reported to be more than 80 per cent completed as of August 2026, while construction along the Calabar–Akwa Ibom section had exceeded 30 per cent.
He also noted that the renewed emphasis on capital investment was reflected at the subnational level, where the proportion of state government expenditure devoted to capital projects increased from 46 per cent in 2023 to 61 per cent in 2025.
The President maintained that infrastructure investment was central to restructuring Nigeria’s economic landscape and expanding its 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 debt is finite; the economic value these assets can generate will endure for generations,” he said.
On the economic returns expected from the administration’s legacy projects, President Tinubu explained that infrastructure financing was being guided by value for money and the long-term contribution of each project to national productivity.
“The legacy projects are selected and financed on value addition: what they return to the economy for every Naira spent. They connect production to markets, ports to the hinterland and Nigeria to its neighbours. The Lagos–Calabar Coastal Highway alone is expected to reduce logistics costs by 15–20% along the corridor and could add up to 2% to Nigeria’s GDP through new industrial zones, trade and tourism,” he stated.
He projected that the Lagos–Calabar Coastal Highway would generate approximately 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect employment opportunities in logistics, materials and related services.
The President said similar economic benefits were expected from the Sokoto–Badagry and Trans-Sahara corridors, as well as investments in electricity, rail transportation, ports and social infrastructure.
“Across the Sokoto–Badagry and Trans-Sahara corridors, the same logic applies to the enhancement of the power grid, ports, rail lines, and social infrastructure: jobs during construction, and lasting employment in the industries, farms, and businesses that grow along the routes once they open,” he added.
President Tinubu further linked the administration’s borrowing strategy to the economic reforms introduced since 2023, including the removal of petrol subsidy, unification of the exchange rate, modernisation of the tax framework and measures to address inflation.
He said the reforms had strengthened macroeconomic stability, increased government revenue and improved the credibility of Nigeria’s public finances.
“Since 2023, we have made difficult but necessary decisions: removing the petrol subsidy, unifying the exchange rate, modernising the tax framework, and coordinating action on inflation. These reforms have restored macro balance, quadrupled federation revenue since 2021 and rebuilt the credibility of the State’s balance sheet,” he stated.
The President reported that Nigeria’s real Gross Domestic Product (GDP) growth reached 4.43 per cent in the second quarter of 2026 and 4.2 per cent in the first half of the year, compared with 2.74 per cent in 2023.
He also cited a decline in headline inflation to 14.63 per cent in September 2026 from 20.98 per cent a year earlier, while food inflation stood at 19.59 per cent.
On Nigeria’s external financial position, President Tinubu disclosed that gross external reserves reached US$55.1 billion as of 9 October 2026, including approximately US$46 billion in net reserves, which he described as an 18-year high.
He added that the Nigerian Foreign Exchange Market (NFEM) rate stood at ₦1,333 to the United States dollar, with the market spread below five per cent, while Nigeria’s borrowing costs and country risk premium had declined.
The President further highlighted improvements in government revenue, noting that the tax-to-GDP ratio increased from seven per cent to 12.5 per cent, while net Federation Account Allocation Committee (FAAC) revenue rose by 44 per cent, from ₦15.2 trillion in 2024 to ₦21.9 trillion in 2025.
He also reported that Nigeria recorded a ₦20.1 trillion trade surplus in the first half of 2026, nearly doubling the ₦10.2 trillion recorded during the corresponding period of 2025.
President Tinubu maintained that the improved fiscal position provided a stronger foundation for directing public borrowing towards investments capable of generating sustainable economic returns.
“This changes the purpose of public borrowing. The objective is to increasingly direct new borrowing towards productive capital investment, while maintaining fiscal discipline, reducing refinancing pressures and ensuring that public debt translates into measurable economic value. Nigeria borrows to invest in roads, ports, rail and power that will generate growth, revenue and jobs for decades,” he said.
He reiterated that the administration’s long-term economic objective was to ensure that public borrowing financed productive assets rather than consumption, with the resulting economic benefits contributing to debt repayment.
“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 stated.
The President concluded that the economic value of infrastructure investments would extend beyond their construction periods through reduced transportation costs, improved food affordability, stronger export competitiveness and increased government revenue.
“Lower transport costs mean lower food prices, more competitive exports and stronger revenue for the State. That is value for money: assets that pay back through growth, jobs and revenue, financed over a horizon that matches their life, and each one a step towards the USD 1 trillion economy,” President Tinubu added.
