A Nigerian senator has urged President Bola Ahmed Tinubu to prioritize borrowing “good money” for infrastructure projects, emphasizing the need for sustainable development.
Jimoh Ibrahim, the lawmaker representing Ondo South in the National Assembly, defended the Federal Government’s planned borrowings on Tuesday.
Ibrahim, a guest on Channels Television’s Politics Today, suggested that the current administration should consider borrowing what he termed as wise investments.
“To be practical, you should borrow quality funds instead of random amounts like $2 billion,” he stated.
When questioned about what he considers “good money,” the lawmaker responded, “Anything over $50 billion.”
“You can issue bonds. If the President chooses to visit the United States and launch a national bond with a 10-year maturity at a 10 percent interest rate, you will secure $100 billion.”
President Bola Tinubu has requested the National Assembly to authorize a new external borrowing plan of N1.767 trillion to support the 2024 Budget.
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The president expressed his request in a letter addressed to Senate President Godswill Akpabio and House of Representatives Speaker Tajudeen Abbas. He stated that, if approved, the loan would partially cover the N9.7 trillion deficit in the 2024 budget.
However, the lawmaker emphasized that Tinubu should direct the borrowed funds towards infrastructure projects.
He used Dubai in the United Arab Emirates (UAE) as an example, noting that this Middle Eastern country secured a $168 billion loan which was invested in tourism, innovation, and technology.
Everyone wants to visit Dubai. But where did Dubai get the funds? The city accumulated $168 billion through borrowing, which it invested in infrastructural development. As a result, the volume of visitors and their spending today is significant.
Dubai is repaying $20 billion every two years. If the lending market collapses, where will you find the funding?
“The main point, according to Ibrahim, is that investing in infrastructure development through borrowing leads to an improved situation.”
