The Senator representing Ondo South in the National Assembly, Jimoh Ibrahim, has defended the Federal government’s planned borrowings.
Ibrahim, while featuring as a guest on Channels Television’s Politics Today, encouraged President Bola Tinubu to borrow what he described as “good money”.
“To be realistic, you need to borrow good money, not all these $2 billion,” he said.
Asked his definition of ‘good money’, the lawmaker said: “Anything above $50 billion.”
“You can raise bonds. If Mr. President decides to visit the United States and launch the nation’s bond for 10 years at 10 per cent, you will get a $100 billion.”
President Bola Tinubu has asked the National Assembly to approve a fresh N1.767trillion external borrowing plan in support of the 2024 budget.
The president conveyed his request through a letter to Senate President Godswill Akpabio and Speaker of the House of Representatives, Tajudeen Abbas.
He said if approved, the loan would be used to partly finance the N9.7trillion deficit in the 2024 budget.
But Senator Ibrahim urged Tinubu to ensure that the borrowings should be channeled towards infrastructural projects.
He cited Dubai in the United Arab Emirates (UAE) as an example, saying the Middle East nation took a $168 billion loan that was channeled into tourism, innovation, and technology.
“Today, 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 amount 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? he asked.
“The key issue is that if you borrow and develop your infrastructure, you are better off,” Ibrahim stated.