Tinubu: Nigeria now borrowing to build, not to cover fiscal gaps
- President Tinubu says reforms have cut inflation to 14.63% and lifted reserves to $55.1bn.
- He says new borrowing will go to roads, ports, rail and power rather than consumption.
- The Lagos-Calabar Coastal Highway is cited as the flagship, with Lot 2 over 80% complete.
President Bola Ahmed Tinubu has said his administration has changed the purpose of government borrowing, moving from filling short-term budget gaps to financing roads, ports, rail lines and power projects.
In a guest column published on Thursday, the President said the reforms started in 2023 — removing the petrol subsidy, unifying the exchange rate, modernising the tax framework and coordinating action on inflation — have begun to show results.
He put real GDP growth at 4.43% in the second quarter of 2026 and 4.2% in the first half, up from 2.74% in 2023. Headline inflation, he said, fell to 14.63% in September 2026 from 20.98% a year earlier, though food inflation remained high at 19.59%.
According to the President, gross external reserves reached $55.1bn as of 9 October 2026, including about $46bn in net reserves, which he described as an 18-year high. The exchange rate stood at ₦1,333 to the dollar, he added.
What it means for ordinary Nigerians
The President argued that lower transport costs from new highways should eventually mean lower food prices and more competitive exports. He said the Lagos–Calabar Coastal Highway alone is expected to cut logistics costs by 15–20% along the corridor and could add up to 2% to GDP.
On jobs, he said the coastal highway is expected to create about 100,000 direct jobs in construction and engineering, and more than 150,000 indirect jobs in logistics, materials and services.
He also listed the Sokoto–Badagry Superhighway, the Trans-Sahara Superhighway, upgrades to commercial ports in Lagos, work on the electricity grid, and rehabilitation of key hospitals as priority projects.
On delivery, he said Lot 2 of the Lagos–Calabar highway was reported to be over 80% complete as of August 2026, while works in the Calabar–Akwa Ibom section were over 30% complete.
The President said public debt stood at 35.75% of GDP in the second quarter of 2026, but debt service was about 65% of revenue in the first half of the year — a figure he said shows why spending discipline must hold.
He said the Federal Executive Council has ruled out deficit monetisation and unfunded commitments during the pre-election period, and that the Monetary Policy Rate was cut by 350 basis points to 23% on 22 September 2026, even as lending rates remain above 30%.
He also pointed to positive rating actions from S&P, Fitch and Moody's, Nigeria's return to Frontier Market status by FTSE Russell, and the country's removal from the FATF grey list as signs of renewed investor confidence.
The President said the goal is a $1 trillion economy by 2030, built on investment rather than consumption.
"We are not borrowing against our children's future," he wrote, arguing that the assets financed will outlast the debt.
What happens next
The President said the next phase will be judged on projects completed on the ground rather than policy documents. The FEC's listed priorities include food affordability and energy price stability, budget harmonisation, completion of high-impact projects, regulatory efficiency, and targeted household support.
