IMPI Defends Tinubu’s Debt For Infrastructure Policy, Says Borrowing Key To Nigeria’s Development
The Independent Media and Policy Initiative (IMPI) has defended President Bola Ahmed Tinubu’s debt-for-infrastructure policy, arguing that strategic borrowing remains essential to closing Nigeria’s massive infrastructure deficit and stimulating long term economic growth.
In a policy statement titled “In Defence of President Tinubu’s Debts-for-Infrastructure Policy,” IMPI dismissed criticisms from opposition figures and advocacy groups as politically motivated and lacking realistic alternatives to Nigeria’s infrastructure financing challenges.
Signed by its Chairman, Dr. Omoniyi M. Akinsiju, the group stated that Nigeria’s infrastructure deficit remains one of the greatest impediments to economic productivity, noting that over 70 per cent of the country’s 195,000 kilometre road network is in poor condition.
The statement also highlighted the country’s weak rail and power infrastructure, noting that Nigeria currently operates only about 3,500 kilometres of rail lines for a population of over 220 million people, while effective electricity generation averages just 4,000 megawatts despite an installed capacity of 12,500MW.
According to IMPI, these deficiencies have significantly increased the cost of doing business and contributed to the exit of multinational firms such as GSK and Procter & Gamble from Nigeria.
The group reviewed various estimates of Nigeria’s infrastructure gap by international institutions, including the World Bank, African Development Bank (AfDB), International Finance Corporation (IFC), and KPMG.
While the World Bank estimated that Nigeria would require about $3 trillion over 30 years to bridge its infrastructure deficit, KPMG projected that annual spending of $14.2 billion over a decade amounting to $142 billion could substantially modernise the country’s infrastructure base.
IMPI argued that no Nigerian government since 2000 had consistently met this benchmark through budgetary allocations alone, citing decades of underfunded and poorly implemented capital budgets.
However, the group praised the Tinubu administration for what it described as a “record breaking fiscal milestone,” noting that the 2026 Appropriation Act allocated about $23 billion to infrastructure and capital projects the highest in Nigeria’s history.
According to IMPI, the administration’s decision to finance much of the budget deficit through borrowing is justified, given the scale of Nigeria’s infrastructure needs.
The group rejected arguments that savings from fuel subsidy removal should be sufficient to fund infrastructure projects, maintaining that the estimated $10 billion annual subsidy savings could not adequately address the country’s huge capital requirements.
It also expressed reservations about relying heavily on Public Private Partnerships (PPPs), arguing that infrastructure PPPs in Nigeria are often hindered by high transaction costs, policy uncertainties, weak institutional frameworks, and low investor confidence.
IMPI noted that although Nigeria’s pension and insurance assets exceed $100 billion, less than five per cent is invested in infrastructure, compared to about 15 per cent in South Africa.
The statement further pointed to growing investor confidence in Nigeria’s debt instruments, citing a decline in Nigeria’s sovereign Eurobond yields from 8 per cent to 6.89 per cent.
According to the group, this reflects improving macroeconomic stability and stronger foreign investor sentiment toward Nigeria.
IMPI maintained that government borrowing for infrastructure should be viewed as a developmental necessity, especially when funds are directed toward critical sectors such as transportation, power, healthcare, education, and digital infrastructure.
The group added that the federal government borrowing through bonds and treasury bills also helps deepen Nigeria’s financial markets and provides benchmarks for private sector financing.
Highlighting recent approvals by the Federal Executive Council (FEC), IMPI said the Tinubu administration had already commenced major infrastructure projects, including multi-billion-dollar rail developments in Lagos, Kano, and Kaduna, nationwide road and bridge projects valued at over ₦7 trillion, extensive seaport reconstruction projects, and over ₦1 trillion in power sector investments.
The group further noted that Nigeria’s development aspirations cannot be achieved without large scale infrastructure investment backed by sustainable financing mechanisms, including debt.
