Tinubu’s $2.2 Billion Loan is ‘Lunch Money, Too Insignificant’; Senator Jimoh Ibrahim Urges Nigerians to Support More Borrowing

Tinubu’s $2.2 Billion Loan is ‘Lunch Money, Too Insignificant’; Senator Jimoh Ibrahim Urges Nigerians to Support More Borrowing....KINDLY READ THE FULL STORY HERE▶

November 19, 2024

Senator Jimoh Ibrahim has defended the $2.2 billion loan request made by President Bola Tinubu’s administration, describing the sum as “too insignificant, minute money” and likening it to “just lunch money.”

The lawmaker representing Ondo South Senatorial District made these remarks during an interview on Channels TV on Tuesday, where he urged Nigerians to support the government’s borrowing efforts.

According to Ibrahim, borrowing $2.2 billion for a nation of over 250 million people is a practical step towards bridging the country’s deficit budget, especially as the year draws to a close.

“Encourage the Government to Do More”

“$2 billion to 250 million people to finance a deficit budget for a year that ends in less than 60 days is commendable,” Ibrahim said. “We need to encourage the government to do more.”

He emphasized that borrowing for development projects, such as reviving the Ajaokuta Steel Company, is crucial to economic growth.

“You don’t borrow to keep in your bedroom; you borrow for development,” he explained. “Take Ajaokuta Steel, for instance. If operational, it would create jobs, generate taxes, and significantly boost the economy by supplying iron for housing and infrastructure.”

Deficit Budgeting as an Economic Tool

Ibrahim also highlighted the importance of deficit budgeting as a tool for economic development. “A deficit budget helps to open up the economy,” he said. “If this loan comes to our committees, I don’t think anyone will oppose it. For what? It’s a necessity.”

Global Debt Comparisons

Comparing Nigeria’s debt profile to that of the United States, Ibrahim pointed out that America’s $45 trillion debt is not a cause for concern because the U.S. dollar is a global currency.

“Today, America owes no one because they print dollars and distribute them globally,” he argued. “We must adopt a pragmatic approach and focus on capital injection to boost our economy.”

Addressing Debt Servicing Concerns

Responding to concerns about Nigeria’s debt servicing costs, Ibrahim called the rates fair given the global market conditions. He also referenced improvements in national security under the current administration, claiming Boko Haram’s presence has significantly diminished.

“Why don’t you talk about the fact that we don’t see Boko Haram in Abuja anymore like during previous administrations?” he asked.

Reassurance on Tinubu’s Leadership

Ibrahim dismissed fears of corruption in the current administration, stating, “Tinubu will not steal Nigeria’s money. Steal for what? He was already comfortable before assuming office.”

The senator concluded by criticizing past administrations for mismanaging the economy while expressing confidence in Tinubu’s ability to restore fiscal stability.

Rising Concerns Over Debt

Despite Ibrahim’s reassurances, Nigeria’s rising debt profile has drawn scrutiny. Reports indicate that in just eight months, the country spent N7.4 trillion on debt servicing—more than double the N3.6 trillion allocated to capital expenditure during the same period. Critics argue this trend underscores the need for fiscal caution and greater transparency in loan utilization.