Tinubu defends $22B loan plan for $1T economy goal as NLC demands accountability
President Tinubu has defended his administration's request for National Assembly approval to borrow $20.5 billion and €1.45 billion (about ₦22 billion total), arguing Nigeria needs long-term infrastructure investment to hit a $1 trillion economy by 2030. In a statement titled "From Reforms to Delivery," Tinubu said the focus should be on "what we build, the value we create and the future we leave behind" rather than the loan amounts.
The funds target the Lagos-Calabar Coastal Highway (projected to cut transport costs 15-20% and add 2% to GDP), Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades, and major port improvements in Lagos. Tinubu claims the coastal highway alone could create 100,000 direct construction jobs and 150,000 indirect jobs.
Tinubu cited economic gains since May 2023 reforms: Q2 2026 GDP growth of 4.43%, inflation down to 14.63% from 20.98% a year ago, external reserves at $55.1 billion ($46B net), tax-to-GDP ratio up to 12.5% from 7%, and FAAC allocations rising 44% (₦15.2T to ₦21.9T). He said loans would be long-term to match project lifespans, though public debt stands at 35.75% of GDP and debt servicing consumes 65% of revenue.
NLC President Joe Ajaero challenged the borrowing on Channels TV, noting the 2026 budget assumed $70/barrel oil but prices now exceed $100 due to US-Iran tensions. "If you're making more money from subsidy removal and higher oil prices, what's the justification for more IMF and World Bank loans?" he asked. Ajaero urged Nigerians to demand accountability.
With debt servicing already eating two-thirds of revenue, will you trust that borrowed billions translate to completed highways and power — or will this follow the pattern of loans secured, projects abandoned, and citizens left with the bill?