President Bola Tinubu has said his administration’s tough economic reforms are beginning to deliver results and that Nigeria is now shifting public borrowing away from short-term fiscal pressures toward long-term infrastructure investment.
In a report outlining his infrastructure investment and growth strategy, Tinubu said the removal of the petrol subsidy, unification of the exchange rate, tax modernisation and coordinated action on inflation had restored macroeconomic balance and rebuilt the credibility of the state’s balance sheet.
According to the report, real GDP growth reached 4.43% in the second quarter of 2026 and 4.2% in the first half, up from 2.74% in 2023. Headline inflation fell to 14.63% in September 2026 from 20.98% a year earlier, although food inflation remained elevated at 19.59%.
Gross external reserves stood at USD 55.1 billion as of 9 October 2026, including about USD 46 billion in net reserves — an 18-year high. The NFEM exchange rate was ₦1,333/US$, with the market spread below 5%. Public debt was put at 35.75% of GDP in the second quarter of 2026, while debt service was about 65% of revenue in the first half.
Tinubu said the purpose of borrowing was changing. “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 in the report.
The government, he added, was directing new borrowing toward productive capital investment while maintaining fiscal discipline. The Federal Executive Council has ruled out deficit monetisation and unfunded commitments during the pre-election period.
The administration’s legacy projects include the Lagos–Calabar Coastal Highway, power sector and electricity grid improvements, the Sokoto–Badagry Superhighway, the Trans-Sahara Superhighway, and upgrades to major commercial ports in Lagos, as well as hospital rehabilitation and investment in education and vocational training.
The report said delivery was already visible on the Lagos–Calabar Coastal Highway, with Lot 2 reported to be over 80% complete as of August 2026 and the Calabar–Akwa Ibom section over 30% complete. It added that the share of state spending devoted to capital expenditure rose from 46% in 2023 to 61% in 2025.
It projected that the coastal highway could reduce logistics costs by 15–20% along the corridor and add up to 2% to GDP through new industrial zones, trade and tourism. The project is expected to generate about 100,000 direct jobs in construction and engineering and more than 150,000 indirect jobs in logistics, materials and services.
On international confidence, the report noted that S&P upgraded Nigeria’s sovereign rating to B on 15 May 2026 with a stable outlook, while Fitch rated Nigeria B with a positive outlook as of 9 October 2026 and Moody’s rated it B3 with a positive outlook. It also cited Nigeria’s restoration to Frontier Market status by FTSE Russell and its removal from the FATF grey list in October 2025 and the EU list in January 2026.
Tinubu said international investors now expect Nigeria to move from reform to delivery. He listed the Federal Executive Council’s next priorities as food affordability and energy price stability; budget harmonisation and fiscal discipline; high-impact project completion and critical infrastructure investment; an economic policy framework and regulatory efficiency; and targeted household support and human development investment.
“We did not undertake difficult reforms merely to stabilise the economy. We undertook them to unlock Nigeria’s economic potential and build lasting prosperity,” Tinubu said, adding that the next phase must be defined by projects completed on the ground and tangible results for Nigerians.