The Independent Media and Policy Initiative (IMPI) has defended President Bola Ahmed Tinubu’s debt-for-infrastructure policy, insisting that Nigeria’s huge infrastructure deficit cannot be addressed without strategic borrowing and sustained capital investment.
In a statement signed by its Chairman, Dr. Omoniyi M. Akinsiju, the group argued that criticisms against the Federal Government’s borrowing plans were politically motivated and failed to provide realistic alternatives for addressing the country’s longstanding infrastructure challenges.
According to IMPI, Nigeria’s poor infrastructure continues to hinder economic growth, productivity, and citizens’ quality of life, noting that over 70 per cent of the nation’s 195,000-kilometre road network remains in poor condition. The group also highlighted deficiencies in rail transportation and electricity supply, stating that Nigeria’s installed power generation capacity remains grossly inadequate for a population exceeding 220 million people.
The policy group cited estimates from global institutions, including the World Bank, African Development Bank (AfDB), International Finance Corporation (IFC), and KPMG, on Nigeria’s infrastructure deficit. It noted that while estimates vary between $142 billion and $3 trillion, KPMG’s recommendation of $14.2 billion annual infrastructure spending over 10 years appeared more realistic within Nigeria’s fiscal environment.
IMPI maintained that no Nigerian government since 2000 had consistently achieved such infrastructure spending levels until the Tinubu administration’s recent fiscal framework.
The statement noted that the 2026 Appropriation Act allocated approximately $23 billion to infrastructure and capital projects, describing it as the highest capital allocation in Nigeria’s history and a major shift in fiscal policy.
According to the group, the Tinubu administration’s strategy of financing infrastructure through debt is justified because the country’s infrastructure requirements far exceed savings generated from the removal of fuel subsidies.
“The country definitely needed more than the $10 billion saved from subsidies to provide functional infrastructural facilities,” the statement said.
Responding to calls for greater reliance on Public-Private Partnerships (PPP), IMPI argued that PPP arrangements in Nigeria have historically faced obstacles such as weak legal frameworks, high transaction costs, lengthy negotiations, political instability, and inadequate institutional capacity.
The group further stated that local institutional investors, including pension and insurance funds valued at over $100 billion, have invested less than five per cent in infrastructure projects, reflecting the private sector’s limited appetite for infrastructure financing in Nigeria.
IMPI also pointed to improving investor confidence in Nigeria’s economy, citing declining sovereign Eurobond yields and increased foreign investor interest in Nigeria’s debt instruments.
The organisation argued that government borrowing for infrastructure development would ultimately stimulate economic growth, create jobs, improve transportation and energy systems, deepen local financial markets, and encourage private-sector participation.
Highlighting recent Federal Executive Council approvals, the group referenced multi-billion-dollar rail projects in Lagos, Kano, and Kaduna, major road and bridge projects nationwide, reconstruction of key seaports, and over ₦1 trillion in power sector capital projects as evidence of renewed infrastructure development under the Tinubu administration.
IMPI concluded that Nigeria’s development priorities require aggressive infrastructure financing and that debt, when channelled into productive sectors, remained a legitimate and necessary tool for national growth.
