Politics

Senator Jimoh Ibrahim Defends New $2.2 Billion Loan Proposal, Calls for More Borrowing

Published by Tope Fakinlede on November 20th, 2024.

Senator Jimoh Ibrahim Defends New $2.2 Billion Loan Proposal, Calls for More Borrowing

Senator Jimoh Ibrahim has expressed support for the proposed $2.2 billion loan under President Bola Tinubu’s administration, defending the request during an appearance on Channels TV. Representing Ondo South Senatorial District, Ibrahim argued that borrowing such an amount for a population of 250 million is not excessive.

Describing the $2.2 billion as “minuscule” and “just lunch money,” Ibrahim emphasized that the loan, intended to address a budget deficit, is a reasonable step. “For a population of 250 million, this amount is not significant. It’s a good effort by the government. Nigeria needs to support the government’s initiatives,” he said.

He further explained that borrowing for development purposes is essential, citing the example of Ajaokuta Steel Company Limited. “When you borrow, it’s for the country’s development. If we borrow for Ajaokuta, it would create jobs, generate taxes, and boost the economy. It’s an investment for the future,” Ibrahim noted.

On the issue of debt servicing, the senator asserted that Nigeria’s current debt obligations are manageable, particularly given global market conditions. He pointed out that borrowing at high interest rates would be detrimental to business, emphasizing that Nigeria’s debt ratio should be viewed in context. “In contrast to countries like the U.S., which have enormous debts but control the global currency, Nigeria must navigate its own fiscal challenges.”

Ibrahim also defended President Tinubu’s integrity, asserting that he would not misuse public funds, unlike previous administrations. He pointed out the financial turmoil left behind by former President Goodluck Jonathan and the challenges faced under President Muhammadu Buhari.

While the Nigerian government’s loan acquisitions have sparked debate, especially after the country spent N7.4 trillion on debt servicing in just eight months, Senator Ibrahim remains firm in his belief that borrowing is crucial for economic development and progress.