President Bola Ahmed Tinubu has defended his administration’s proposed $20.5 billion external borrowing programme, insisting that the loans are necessary to address Nigeria’s infrastructure deficit and create better opportunities for future generations.
Tinubu maintained that the proposed borrowing would finance critical investments in power, transportation, healthcare, education, agriculture, water supply, security and employment generation.
The President’s position was contained in a statement issued on Thursday, October 29, 2026, by his Special Adviser on Information and Strategy, Bayo Onanuga, amid growing criticism over the government’s continued borrowing and concerns about the country’s rising debt burden.
According to Tinubu, Nigeria requires substantial financial resources to address its infrastructure challenges, arguing that the country cannot achieve its development objectives without additional investment.
“In light of the need for significant infrastructure investment in the country and the vast financial resources needed to address this gap, it has become essential to pursue broader external borrowings to close the financing shortfall. This is for our children’s future,” the President said.
He explained that the projects included in the borrowing plan were selected following technical and economic evaluations, with consideration given to their expected contributions to national development.
Tinubu said the investments were expected to generate employment, promote skills acquisition, encourage entrepreneurship, reduce poverty and strengthen food security. He added that most of the proposed projects would be implemented across Nigeria’s 36 states and the Federal Capital Territory.
In a separate article titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, the President further defended the administration’s borrowing policy, arguing that the real measure of public borrowing should be the value and development outcomes generated by the projects financed.
He identified major infrastructure initiatives, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of commercial ports in Lagos, as projects expected to improve transportation, trade and economic productivity.
The President also said the administration was pursuing longer-term financing arrangements to match the lifespan of infrastructure assets, reduce refinancing pressures and secure more favourable funding conditions.
However, the proposed borrowing has generated concerns among Nigerians and political stakeholders, particularly over the country’s ability to repay additional loans while meeting existing financial obligations.
The latest proposal seeks legislative approval for external facilities valued at $20,517,755,901 and €1,045,083,643 under the Federal Government’s 2026–2027 Supplementary External Borrowing Plan. The combined value is approximately $21.7 billion, depending on the prevailing exchange rate.
The request was transmitted to the National Assembly, where it was referred to relevant committees for consideration. The proposed facilities must undergo legislative scrutiny before the government can proceed with the borrowing arrangements.
Senator Victor Umeh has questioned the administration’s demand for additional loans, asking why contractors executing government projects were still awaiting payment despite previous borrowing approvals.
He argued that Nigerians deserved greater transparency about the utilisation of funds already borrowed and the extent to which previous financing arrangements had translated into completed projects.
The Federal Government, however, maintains that the proposed loans are intended to finance productive investments rather than merely cover short-term spending needs.
The debate comes as Nigerians continue to grapple with the cost of living, rising household expenses and concerns about the benefits of the government’s economic reforms.
Tinubu insisted that the success of the borrowing programme should ultimately be measured by completed projects, job creation, increased productivity and improvements in citizens’ living standards.
He maintained that investments financed through the proposed loans would help build infrastructure and expand economic opportunities for future generations.
Post a Comment