IMPI Defends Tinubu’s Borrowings, Says Nigeria Needs $14.2bn Yearly for Infrastructure
The Independent Media and Policy Initiative (IMPI) has defended the borrowing policy of President Bola Tinubu’s administration, arguing that Nigeria requires massive and sustained investment in infrastructure that cannot be funded through annual budgets alone.
In a policy statement signed by its Chairman, Dr. Omoniyi Akinsiju, the policy group said the country would need a minimum annual capital expenditure of $14.2 billion over the next 10 years to significantly bridge its infrastructure deficit.
According to the group, Nigeria’s infrastructure challenges have continued to hinder productivity and lower the standard of living, stressing that international institutions have consistently placed the country’s infrastructure stock far below global benchmarks for middle-income economies.
IMPI noted that the World Bank estimated Nigeria’s infrastructure stock at between 30 and 35 per cent of Gross Domestic Product (GDP), far below the institution’s 70 per cent benchmark for middle-income nations.
The group said the World Bank projected that Nigeria would require investments of up to $3 trillion over 30 years to close the gap, while the African Development Bank (AfDB) estimated the shortfall at $2.3 trillion.
It added that the International Finance Corporation (IFC) projected a requirement of $2 trillion over 20 years, while global audit firm KPMG estimated that Nigeria would need $14.2 billion annually over a 10-year period, amounting to $142 billion.
IMPI stated that after analysing the different estimates, KPMG’s projection appeared the most realistic considering Nigeria’s constrained revenue-generation capacity.
“Among all the estimates, KPMG’s $142 billion estimate aligned more closely with the Nigerian situation, with a probable outcome indicating that spending $14.2 billion annually over 10 years is a key target to bridge Nigeria’s infrastructure gap,” the statement said.
The think tank argued that consistent investments in transportation, power and digital infrastructure would accelerate economic growth, create jobs and modernise the country’s economy.
It added that such investments could generate three to four times more jobs across the economy, reduce unemployment, improve road networks, enhance aviation safety and support the growth of a modern digital economy.
Reviewing federal budget performance over the last 25 years, IMPI said the Tinubu administration had, for the first time, come close to meeting the annual infrastructure spending benchmark recommended by KPMG.
The group described the 2026 Appropriation Act as a “record-breaking fiscal milestone,” noting that about $23 billion was allocated to infrastructure and capital expenditure.
According to IMPI, the allocation exceeded the estimated $14.2 billion annual benchmark required to address the nation’s infrastructure deficit.
“Without doubt, the 2026 budget is indicative of a new vista in the nation’s fiscal firmament with emphasis on securing debts for infrastructure development,” the group stated.
It further noted that the approved infrastructure budget was almost equivalent to the projected budget deficit, which would largely be financed through borrowing.
