Senator Jimoh Ibrahim Urges Strategic Borrowing for Infrastructure Development

Senator Jimoh Ibrahim of Ondo South has called on President Bola Tinubu to pursue strategic borrowing to fund critical infrastructure projects. Speaking on Channels Television’s Politics Today on Tuesday, Ibrahim expressed support for the Federal Government’s proposed borrowing plans, advocating for what he termed "good money."

“To be realistic, you need to borrow good money, not all these $2 billion,” Ibrahim stated during the interview. He proposed the issuance of long-term national bonds as an alternative funding method.

“If Mr. President decides to visit the United States and launch the national bond at 10 years at 10 per cent, you will get $100 billion,” he added. According to the senator, borrowing amounts “above $50 billion” is necessary to drive significant economic development.

President Tinubu recently requested the National Assembly’s approval for a new foreign borrowing plan amounting to N1.767 trillion to help address the N9.7 trillion deficit in the 2024 budget. The funds, if approved, are expected to be used for infrastructure and other critical areas.

In his letter to the Speaker of the House of Representatives, Tajudeen Abbas, and Senate President Godswill Akpabio, Tinubu emphasized the importance of the loan to sustain government operations and advance development goals.

Ibrahim compared Nigeria’s situation to Dubai’s successful borrowing strategy.

“Everybody wants to go to Dubai. Where did Dubai get the money from? Dubai borrowed $168 billion and used it for infrastructural development. Today, the city attracts millions of tourists and billions in revenue annually,” he explained.

He further stressed that investing borrowed funds in infrastructure creates long-term economic benefits, stating, “If you borrow and develop your infrastructure, you are better off.”

While the senator's recommendations have sparked discussions on strategic borrowing, critics have highlighted the need for transparency and accountability to ensure funds are effectively utilized. Ibrahim emphasized that proper allocation to infrastructure is key to maximizing the benefits of borrowing.

The debate over borrowing and national development continues to be a critical topic in Nigeria’s economic landscape.