‘You Need To Borrow Above $50 Billion, Not $2 Billion’ – Senator Ibrahim Tells Tinubu
The lawmaker representing Ondo South in the National Assembly, Jimoh Ibrahim, has supported President Bola Tinubu‘s administration’s planned borrowings.
Recall that Tinubu has asked the National Assembly to approve a fresh N1.767trn external borrowing plan in support of the 2024 Budget.
The president conveyed his request in a letter to Senate President Godswill Akpabio and Speaker of the House of Representatives, Tajudeen Abbas. He said if approved, the loan would partly be used to finance the N9.7trn deficit in the 2024 budget.
In an interview on Channels Television’s Politics Today, Ibrahim said the current administration should borrow above $50 billion, not $2 billion.
However, the lawmaker urged Tinubu to ensure that the borrowings are channelled towards infrastructural projects.
He cited Dubai, in the United Arab Emirates (UAE), as an instance, saying the Middle East nation borrowed a $168 billion loan that was channelled into tourism, innovation, and technology.
He said, “To be realistic, you need to borrow good money, not all these $2 billion. Anything above $50 billion.”
“You can raise bonds. If Mr President decides to visit the United States and launch the nation bond at 10 years at 10 per cent, you will get a $100 billion.
“Everybody wants to go to Dubai. Where did Dubai get the money from? Dubai got the money by borrowing $168 billion and using it for infrastructural development in such a way that you can have the number of people going to Dubai today and the number of dollars that they go with is enormous.
“Dubai is paying back by $20 billion every other year. If the lending market disappears, where are you going to get the money from?
“The key issue is that if you borrow and develop your infrastructure, you are better off.”
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