Tinubu Defends $20.5bn Loan Plan to Drive Nigeria’s $1tn Economy Target - M

President Bola Tinubu has defended the Federal Government’s plan to secure fresh foreign loans, arguing that long-term infrastructure investment is necessary to grow Nigeria’s economy to $1 trillion by 2030. Tinubu said the proposed borrowing would fund critical infrastructure, including roads, electricity

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SharePresident Bola Tinubu has defended the Federal Government’s plan to secure fresh foreign loans, arguing that long-term infrastructure investment is necessary to grow Nigeria’s economy to $1 trillion by 2030.

 

Tinubu said the proposed borrowing would fund critical infrastructure, including roads, electricity transmission, commercial ports and other projects expected to create jobs, support businesses and improve economic productivity.

His defence follows concerns raised by the Nigeria Labour Congress (NLC) over the government’s request for National Assembly approval to borrow $20.5 billion and €1.45 billion despite claims of increased government revenue following the removal of petrol subsidy.

In a statement titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, the President argued that the impact of borrowing should be measured by the economic value created through the projects it finances.Advertisement

“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind,” he said.

Tinubu identified the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and upgrades to major commercial ports in Lagos among the projects the government intends to fund.

According to the President, the projects will connect economic regions, reduce transportation costs, improve trade and create opportunities for businesses across different sectors.

He added that investments in healthcare, education and vocational training would complement infrastructure development by strengthening human capital and equipping Nigerians with relevant skills.

The President said Nigeria could not achieve its $1 trillion economy ambition without infrastructure capable of supporting a significantly larger economy.Advertisement

“We cannot build a $1 trillion economy with infrastructure designed for an economy a fraction of that size,” he added.

Tinubu also projected that the Lagos-Calabar Coastal Highway could reduce transportation costs along its route by 15 to 20 per cent and contribute up to two per cent to Nigeria’s Gross Domestic Product (GDP) through increased trade, tourism and industrial activities.

He estimated that the highway could generate about 100,000 direct jobs in construction and engineering, alongside more than 150,000 indirect jobs in logistics, building materials and related services.

“We are building more than highways. We are opening economic corridors, connecting markets, supporting industries and reshaping Nigeria’s economic geography,” he said.

The President also defended the borrowing plan by pointing to improvements in key economic indicators following reforms introduced by his administration in May 2023.Advertisement

He cited the removal of petrol subsidy, exchange rate unification, tax reforms and efforts to control inflation as measures that have contributed to changes in the country’s economic performance and public finances.

According to Tinubu, Nigeria’s economy grew by 4.43 per cent in the second quarter of 2026, while headline inflation declined to 14.63 per cent in September from 20.98 per cent in the corresponding period of 2025.

He added that the country’s gross external reserves stood at $55.1 billion as of October 9, 2026, including approximately $46 billion in net reserves.

Tinubu further stated that Nigeria’s tax-to-GDP ratio increased to 12.5 per cent from seven per cent, while net allocations from the Federation Account Allocation Committee (FAAC) rose by 44 per cent, from ₦15.2 trillion in 2024 to ₦21.9 trillion in 2025.

He said these developments had strengthened investor confidence and improved Nigeria’s access to international financing.Advertisement

The President also cited assessments by international credit rating agencies, Nigeria’s return to Frontier Market status and its successful Eurobond issuance as signs of improved financial credibility.

According to him, the government is seeking longer-term loans that align repayment periods with the useful lives of the infrastructure projects being financed.

He said this approach would help reduce pressure from frequent repayments and secure more favourable borrowing terms.

Despite the government’s justification, the Nigeria Labour Congress has questioned the need for additional foreign loans, particularly given the administration’s claims of increased revenue following the removal of petrol subsidy.

Speaking on Channels Television’s The Morning Brief, NLC President Joe Ajaero challenged the government to explain why it continued to seek loans from international financial institutions, including the International Monetary Fund and the World Bank.Advertisement

“If you come out to tell us that subsidy is gone, that you are making more money and then you are giving more money to states, what is the justification for continually borrowing from the International Monetary Fund and the World Bank and other agencies when there is enough money?” he asked.

Ajaero also questioned the borrowing plan in light of rising international crude oil prices.

He noted that Nigeria’s 2026 budget was based on an oil price benchmark of $70 per barrel, while prices had risen above $100 per barrel amid tensions involving the United States and Iran.

The labour leader argued that higher oil earnings and increased revenue allocations to oil-producing states should prompt the government to explain why further borrowing remained necessary.

However, Ajaero clarified that the NLC did not have the authority to approve or reject government borrowing, noting that such decisions rested with the relevant government institutions.Advertisement

He called on Nigerians and relevant agencies to demand greater accountability over the government’s borrowing plans and the use of public funds.

Tinubu acknowledged the need for fiscal discipline, noting that Nigeria’s public debt stood at 35.75 per cent of GDP in the second quarter of 2026, while debt servicing accounted for approximately 65 per cent of government revenue in the first half of the year.

He said the Federal Executive Council’s economic plan included avoiding the printing of money to finance budget deficits and preventing spending commitments that were not backed by available funds during the pre-election period.

The President maintained that the success of the borrowing plan would ultimately depend on whether the funded projects were completed, delivered value for money and improved the livelihoods of Nigerians.

“Securing financing is only the beginning. The real achievement lies in completing projects, delivering value for money, and improving Nigerians’ lives,” he said.Advertisement

 

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Related Topics:$1 Trillion EconomyBola TinubuForeign Loansinfrastructure developmentJob CreationLagos-Calabar Coastal HighwayNigeria DebtNigeria EconomySmall Businesses

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Economy

CBN Sells N2.63 Trillion OMO Bills as Stop Rates Rise

Published 1 week ago on October 23, 2026

By MSME Editor Blessing

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The Central Bank of Nigeria (CBN) has sold N2.63 trillion in Open Market Operations (OMO) bills, exceeding its initial N2 trillion offer by N628.52 billion, as interest rates increased across both tenors at its October 22, 2026 auction.

According to the auction results, investors submitted bids worth N2.728 trillion, representing 1.36 times the amount initially offered by the apex bank.

The 180-day bill attracted the largest share of subscriptions and allotments, while the shorter 138-day instrument received less than its initial offer despite recording a higher stop rate.

The CBN allotted N1.773 trillion to the 180-day OMO bill, exceeding the N1 trillion initially offered for the instrument. It attracted subscriptions of N1.853 trillion, representing 1.85 times the amount offered.

The 138-day bill received N875.24 billion in subscriptions against its N1 trillion offer, with the bank allotting N855.24 billion.Advertisement

The auction results showed the following:

180-day bill: N1.773 trillion allotted at a stop rate of 17.14%, with maturity scheduled for April 20, 2027.

138-day bill: N855.24 billion allotted at a stop rate of 17.63%, with maturity scheduled for March 9, 2027.

The CBN accepted approximately 96.35 per cent of total bids by value, leaving N99.54 billion unallotted.

The 180-day instrument accounted for approximately 67.92 per cent of total subscriptions, reflecting stronger investor demand for the longer tenor.

Despite receiving fewer subscriptions, the 138-day bill recorded a stop rate 49 basis points higher than that of the 180-day instrument.

The October 22 auction recorded higher stop rates than the previous OMO sale held on October 6, suggesting a pause in the recent downward movement in rates.

At the October 6 auction, the CBN allotted approximately N3.31 trillion against an initial offer of N2 trillion. The 147-day bill cleared at 17.22 per cent, while the 182-day instrument recorded a stop rate of 16.92 per cent.Advertisement

Compared with that auction, the latest 138-day bill recorded a stop rate 41 basis points higher than the previous 147-day instrument, while the 180-day bill’s rate increased by approximately 22 basis points relative to the previous 182-day bill.

The September 29 auction had recorded stop rates of 17.24 per cent and 16.94 per cent for comparable shorter and longer instruments, respectively.

Meanwhile, at the October 14 Treasury bill auction, the stop rate on the 364-day instrument increased by five basis points to 15.90 per cent, marking its first rise since August.

Although the instruments have different maturities, the latest results point to renewed upward pressure on short-term government securities yields.

The increase in stop rates could influence investor returns and the cost of funds in the financial system as the CBN continues to use OMO bills to manage liquidity.Advertisement

 

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Economy

World Bank Sets Conditions for Nigeria’s $500m Loan Disbursement

Published 1 week ago on October 22, 2026

By Olusola Blessing

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The World Bank has outlined conditions Nigeria must meet to access a $500m loan under the Nigeria Actions for Investment and Jobs Acceleration (NAIJA) Development Policy Financing programme, including satisfactory progress on economic reforms and compliance with financial reporting requirements.

According to a World Bank document obtained by Nairametrics, the loan agreement was signed on October 6, 2026, by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on behalf of the Nigerian government.

The facility, to be disbursed by the International Bank for Reconstruction and Development (IBRD), comprises two withdrawal tranches of $249.375m each, with $1.25m allocated to the front-end fee.

The loan forms part of the broader $1.25bn development policy financing package approved by the World Bank in June 2026 to support reforms aimed at improving Nigeria’s business environment, strengthening public revenue and reducing trade barriers.

Under the agreement, access to the first tranche depends on the World Bank being satisfied with the implementation of the program and the adequacy of Nigeria’s macroeconomic policy framework.

The second tranche carries additional requirements, including evidence that the government has made satisfactory progress in implementing the program, maintained an adequate macroeconomic policy framework and completed specified policy actions.Advertisement

The agreement states that the bank will not release the second tranche until it is satisfied with the progress achieved and the implementation of the required reforms.

The World Bank also reserves the right to cancel all or part of the undisbursed loan balance if Nigeria fails to take corrective measures acceptable to the lender within 90 days of receiving notice that the conditions have not been met.

The agreement requires the Nigerian government to maintain a dedicated foreign currency account for the loan proceeds and record the corresponding naira equivalent in its budget management system.

Within 30 days of withdrawing each tranche, the Federal Ministry of Finance must submit a report to the World Bank detailing the amount received, the account into which the naira equivalent was credited and evidence that the funds were recorded in the government’s budget management system.

The ministry must also provide a statement of receipts and disbursements from the dedicated account.Advertisement

In addition, the account must be audited by auditors of the Central Bank of Nigeria acceptable to the World Bank within one month of each withdrawal.

A certified copy of the audit report must be submitted within four months and made publicly available in a timely manner.The agreement sets December 31, 2027, as the closing date for the loan.

The $500m facility is part of the $1.25bn Development Policy Financing package approved by the World Bank in June 2026 under the Nigeria Actions for Investment and Jobs Acceleration programme.

The approval formed part of the lender’s broader Country Partnership Framework for Nigeria covering 2026 to 2032.

The World Bank said the financing was designed to support reforms that would strengthen the foundations for economic growth, improve competitiveness and stimulate private sector investment.Advertisement

However, the proposed borrowing attracted public criticism, with some Nigerians raising concerns about the country’s rising debt profile and the need for greater accountability in the use of external loans. The loan conditions come amid concerns about the rising cost of servicing Nigeria’s debt.

The World Bank recently reported that the Federal Government’s interest payments rose to N7.7tn in the first half of 2026, compared with N5.6tn in the corresponding period of 2025.

According to the bank, interest payments amounted to 124.19 per cent of federal government revenue, while interest costs increased from 2.5 per cent to 3.1 per cent of gross domestic product.

The Nigerian government, however, disputed the interpretation of the figures, arguing that the calculation presented an incomplete picture of the country’s fiscal position because it excluded some government revenue and combined debt obligations across different tiers of government.

The Ministry of Finance maintained that comparing federal interest payments with an incomplete revenue base could give a misleading impression of the government’s capacity to meet its obligations.Advertisement

The latest loan agreement highlights the World Bank’s emphasis on economic reform implementation, financial accountability and macroeconomic stability as conditions for releasing development financing to Nigeria.

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Economy

Nigeria’s Passport Falls From 90th To 181st Position; Visa-Free Access Shrinks

Published 1 week ago on October 21, 2026

By Olusola Blessing

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Nigeria’s passport has dropped to 181st out of 196 countries in the latest IziVisa Passport Ranking Index, highlighting a reported decline in international travel access for Nigerian passport holders.

According to data published on IziVisa.com, Nigerians can travel to 24 countries visa-free, obtain visas on arrival in 16 countries and access 43 countries through electronic visas.

The latest ranking contrasts with Nigeria’s 90th position in July 2026, when the passport recorded visa-free access to 44 destinations.

The reported decline from 44 to 24 visa-free destinations highlights a significant difference in the travel access figures recorded by the two rankings.

IziVisa explained on its website that its index assesses passports based on the number of destinations their holders can access without obtaining a visa in advance. The ranking considers visa-free entry, visas on arrival and electronic visas when measuring international mobility.

The United Arab Emirates topped the 2026 IziVisa ranking, with its passport providing access to 185 of 198 documented destinations through visa-free entry, visas on arrival or electronic visas.Advertisement

Switzerland ranked second, with access to 120 destinations without a visa, 26 offering visas on arrival and 37 accessible through electronic visas. Other countries featuring prominently in the ranking included Luxembourg, Malta, Denmark, Spain and Finland.

The index highlights disparities in international travel access, with the number of destinations available without prior visa approval serving as a key measure of passport mobility.

Separately, the July 2026 edition of the Henley Passport Index ranked Nigeria 90th out of 199 passports assessed worldwide, with a visa-free score of 44 destinations.

Released by Henley & Partners, the ranking represented a one-place decline from Nigeria’s 89th position in April 2026, although its visa-free score remained unchanged at 44 destinations.

The Henley Passport Index assesses 199 passports against 227 travel destinations using data from the International Air Transport Association.Advertisement

Among African countries, South Africa ranked 49th globally, with visa-free access to 101 destinations. Botswana followed in 61st position with access to 81 destinations, while Morocco ranked 67th with 71 destinations.

Kenya occupied 68th position, with access to 70 destinations, while Ghana ranked 70th with a visa-free score of 67.

Nigeria ranked alongside the Democratic Republic of the Congo and Turkmenistan in the Henley index, with each passport providing visa-free access to 44 destinations.

However, the reported IziVisa ranking differs significantly from the Henley figures. Since the two indices use different methodologies and destination coverage, their rankings and scores should not be treated as directly comparable.

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