Nigeria: Every naira borrowed have to be justified by financial worth – Tinubu

President Bola Ahmed Tinubu has defended his administration’s borrowing programme, saying new loans should more and more finance infrastructure that generates jobs, raises productiveness and helps Nigeria’s ambition of turning into a $1 trillion financial system by 2030.

He additionally mentioned the Federal Executive Council’s financial strategy dominated out deficit monetisation and unfunded commitments in the course of the pre-election interval, stressing that funding should proceed alongside fiscal self-discipline.

In an article titled “From reforms to delivery: Our infrastructure investment and growth strategy,” the President mentioned the subsequent section of his administration’s financial programme could be measured by accomplished tasks and enhancements in Nigerians’ lives.

“The key query will not be how a lot we borrow, however what we construct, the worth we create and the long run we go away behind.

“Although loans must be repaid, the roads, ports, railways and economic opportunities they finance can serve generations,” he mentioned.

The President mentioned the federal government was shifting from borrowing to fulfill short-term fiscal pressures to financing property that increase the nation’s productive capability.

He recognized precedence investments because the Lagos–Calabar Coastal Highway, Sokoto–Badagry Superhighway, Trans-Sahara Superhighway, electrical energy grid enhancements and upgrades to main business ports in Lagos.

He mentioned these, alongside rail infrastructure, hospital rehabilitation, schooling and vocational coaching, would join financial areas, cut back enterprise prices and entice non-public funding.

“We can’t construct a $1 trillion financial system with infrastructure designed for an financial system a fraction of that dimension.

“We are investing in infrastructure for the next 50 years, and our financing strategy must reflect that ambition,” he mentioned.

The President acknowledged the necessity for restraint, placing public debt at 35.75 per cent of gross home product within the second quarter of 2026 and debt service at about 65 per cent of income within the first half of the 12 months.

He mentioned these figures strengthened the significance of guaranteeing that borrowing produced measurable financial returns whereas lowering refinancing pressures.

According to him, the federal government is searching for longer reimbursement intervals and decrease financing prices to align infrastructure loans with the helpful lives of the property they fund.

“Infrastructure built to last forty years should be financed over a horizon consistent with its life,” he mentioned.

He mentioned the financial value of delayed funding should even be thought of, saying stalled infrastructure meant misplaced employment, increased logistics bills and missed enterprise alternatives.

On the anticipated advantages of the Lagos–Calabar Coastal Highway, the President mentioned the challenge might cut back logistics prices alongside the hall by 15 to twenty per cent and add as much as two per cent to Nigeria’s GDP via industrial improvement, commerce and tourism.

He projected about 100,000 direct building and engineering jobs, alongside greater than 150,000 oblique jobs in logistics, supplies provide and providers.

The President mentioned comparable advantages had been anticipated from the Sokoto–Badagry and Trans-Sahara corridors, with building employment adopted by longer-term alternatives in companies, farms and industries alongside the routes.

He mentioned as of August 2026, Lot 2 of the coastal freeway was greater than 80 per cent full, whereas works on the Calabar–Akwa Ibom part had exceeded 30 per cent.

“We are constructing greater than highways. We are opening financial corridors, connecting markets, supporting industries and reshaping Nigeria’s financial geography.

“The value of a road extends beyond the completed construction to the farms, factories, businesses and communities it connects,” he mentioned.

The President mentioned the infrastructure programme rested on features from petrol subsidy elimination, exchange-rate unification, tax reforms and measures to curb inflation.

According to him, actual GDP grew by 4.43 per cent within the second quarter of 2026 and 4.2 per cent within the first half, whereas headline inflation declined to 14.63 per cent in September from 20.98 per cent a 12 months earlier.

He mentioned, nevertheless, that meals inflation remained elevated at 19.59 per cent.
The President put gross exterior reserves at $55.1 billion as of October 9, together with about $46 billion in web reserves, which he described as an 18-year excessive.

He mentioned the tax-to-GDP ratio had elevated from seven per cent to 12.5 per cent. In comparability, web Federation Account Allocation Committee distributions rose by 44 per cent, from N15.2 trillion in 2024 to N21.9 trillion in 2025.

He mentioned stronger fiscal situations had been supporting elevated funding throughout tiers of presidency, with capital expenditure’s share of state spending rising from 46 per cent in 2023 to 61 per cent in 2025.

He cited beneficial actions by worldwide credit standing businesses, Nigeria’s restoration to FTSE Russell’s Frontier Market class and its elimination from the Financial Action Task Force gray listing as indicators of bettering monetary credibility.

The President additionally pointed to robust worldwide demand for Nigerian Eurobonds, saying renewed investor confidence provided alternatives for longer-term financing at extra aggressive charges.

He mentioned the Monetary Policy Rate had fallen from 26.5 per cent to 23 per cent in September. However, lending charges above 30 per cent continued to underline the necessity for cheaper financing for productive funding.

He outlined 5 priorities for the subsequent section: meals affordability and vitality worth stability; finances harmonisation and financial self-discipline; completion of high-impact tasks and important infrastructure; improved financial coverage and regulatory effectivity; and focused family assist and human improvement.

The President mentioned entry to financing alone wouldn’t represent success.

“Securing financing is barely the start. The actual achievement lies in finishing tasks, delivering worth for cash, and bettering Nigerians’ lives.

“Every Naira borrowed must be justified by the economic value it creates, and we must measure every project by its results,” he mentioned.