Senator Jimoh Ibrahim, representing Ondo South in the National Assembly, has urged President Bola Tinubu to borrow what he calls ‘good money’ and prioritize investment in infrastructure development. Speaking on Tuesday’s edition of Channels Television’s Politics Today, Ibrahim emphasized the importance of borrowing strategically to stimulate growth, particularly in areas that would foster long-term benefits for the nation.
Defending the federal government’s borrowing plans, Ibrahim explained that the current administration should focus on raising substantial funds that can be channeled into infrastructural projects. He noted that borrowing $2 billion is insufficient, advocating instead for a larger sum that could drive real economic transformation. Ibrahim suggested that one way to achieve this is through issuing bonds, pointing out that if President Tinubu were to launch a national bond with a 10-year tenure at a 10% interest rate, it could potentially raise up to $100 billion.
When asked to define ‘good money,’ Ibrahim specified that it refers to amounts exceeding $50 billion. He firmly believes that such significant investments are necessary to bridge the infrastructural gap in the country and to fuel sustainable development.
This comes in the context of President Tinubu’s recent request to the National Assembly for approval of a new external borrowing plan amounting to N1.767 trillion. This loan, according to the president, would help finance a portion of the N9.7 trillion deficit in the 2024 budget. Tinubu’s proposal, which was formally submitted in a letter to Senate President Godswill Akpabio and House Speaker Tajudeen Abbas, aims to secure funds for national development.
Ibrahim, however, cautioned that any borrowed funds should be directed towards building and improving the country’s infrastructure. Drawing an example from Dubai in the United Arab Emirates (UAE), he pointed out how the Middle Eastern city-state borrowed a substantial $168 billion, which was then invested in tourism, innovation, and technology. This investment has transformed Dubai into a global tourism hub, attracting millions of visitors and generating significant revenue. Ibrahim noted that Dubai repays around $20 billion every two years, highlighting the city’s commitment to infrastructure-driven growth.
The senator stressed that Nigeria, too, could benefit from similar investment in its infrastructure, which would ultimately lead to greater economic opportunities and improved living standards. He argued that borrowing to enhance infrastructure development, as seen in Dubai, is a viable strategy for sustainable growth. He concluded that by prioritizing infrastructural projects, Nigeria would be better positioned to manage its debt while reaping the rewards of enhanced national development.
