TINUBU DEFENDS FRESH FOREIGN LOANS, SAYS BORROWING IS NECESSARY TO BUILD $1 TRILLION ECONOMY

President Bola Ahmed Tinubu has defended his administration’s plans to secure additional foreign loans, arguing that long-term infrastructure investments are necessary to achieve Nigeria’s ambition of becoming a $1 trillion economy by 2030. The President maintained that borrowing should not be judged solely by the amount involved but by the economic value of the projects financed and their potential contributions to national development. Tinubu made his position known in a statement titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, amid growing criticism from labour organisations and opposition figures over Nigeria’s increasing borrowing, the Federal Government is seeking legislative approval for proposed external borrowing of $20.5 billion and €1.45 billion. According to the President, the proposed financing will support major infrastructure projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and upgrades to major commercial ports, he argued that improved infrastructure would reduce transportation costs, strengthen commercial activities, create employment opportunities and attract private investment. Tinubu also projected that the Lagos-Calabar Coastal Highway could reduce transportation costs along its route by between 15 and 20 per cent while contributing to economic growth through increased trade, tourism and industrial activities. The President further disclosed that the project could generate approximately 100,000 direct employment opportunities and more than 150,000 indirect jobs. However, the proposed borrowing has attracted criticism from the Nigeria Labour Congress, which questioned why the country continues to seek foreign loans despite increased government revenue following the removal of the petrol subsidy. NLC President Joe Ajaero argued that Nigerians deserve a clearer explanation of the government’s borrowing decisions, particularly given the additional revenue available to the Federation Account, he also questioned the justification for further borrowing amid rising international oil prices. Tinubu, however, maintained that the proposed loans would be structured around long-term repayment arrangements that correspond with the lifespan of the infrastructure projects being financed, the President also acknowledged the importance of responsible borrowing, noting that Nigeria must manage its debt obligations carefully. The debate has renewed public attention on the country’s borrowing strategy and the need to ensure that loans translate into completed projects, economic opportunities and improved living conditions. Ultimately, the success of the administration’s borrowing plan will depend not only on the funds secured but also on transparency, project execution and measurable benefits for Nigerians.