Senator Jimoh Ibrahim, representing Ondo South in the National Assembly, has called on President Bola Tinubu to consider borrowing substantial amounts, referred to as "good money," to finance critical infrastructure projects.
Speaking on Channels Television’s Politics Today on Tuesday, Ibrahim emphasized the need for strategic borrowing to catalyze economic growth.
“To be realistic, you need to borrow good money, not all these $2 billion. Anything above $50 billion qualifies as good money,” the senator declared.
He suggested that the Federal Government could launch a $100 billion, 10-year national bond at a 10% interest rate in the United States, ensuring sufficient funding for infrastructure development.
Ibrahim’s comments come amidst Tinubu’s request to the National Assembly for approval of a fresh N1.767 trillion external borrowing plan to support the 2024 budget. According to the president, the loan will partly cover the N9.7 trillion deficit in the proposed budget.
The lawmaker underscored the importance of channeling borrowed funds into transformative projects, citing Dubai as an example of effective borrowing.
“Dubai borrowed $168 billion, invested it in tourism, innovation, and technology, and now reaps massive economic benefits.
Today, Dubai pays back $20 billion every other year, thanks to its infrastructure-driven economy,” Ibrahim said.
He urged the Tinubu administration to adopt a similar approach, emphasizing that infrastructure investments could yield significant returns and position Nigeria for sustained economic growth.
“This is the time to borrow strategically and develop the country. If the lending market disappears, where else will you get the money?” Ibrahim cautioned, advocating for bold economic policies to secure Nigeria’s future.
The senator’s remarks have sparked a national conversation about the sustainability and impact of borrowing to finance Nigeria’s development agenda.