Jimoh Ibrahim, the Senator representing Ondo South, has urged President Bola Tinubu to borrow higher amounts for the development of the country.
Recall that the President had on Tuesday written to the National Assembly, requesting approval for an external borrowing of $2.2 billion.
But Mr Ibrahim, during an interview on Channels TV current affairs program Politics Today, said the amount was “too insignificant, minute money, this is just lunch money”.
While defending the loan request, which has come under heavy criticism, Mr Ibrahim said $2.2 billion is too meagre for a population of 250 million people.
He said: “$2 billion to 250 million people to finance the deficit budget of a year that will end in less than 60 days. Good effort from the government, if Nigeria will understand. We need to encourage the government to do more.”
He explained that, “a deficit budget helps in economic development. If this loan comes to our committees, I don’t think anyone is going to say he is against it. For what?”.
He argued that the country borrows for development, citing the instance of borrowing to fund Ajaokuta Steel Company Limited.
“Do you borrow to put in your bedroom? You are borrowing for development,” he said.
“Let’s take a scenario as a case study if you borrow money for the purpose of Ajaokuta funding,” he added.
“30% of houses you build in this country, you need iron. Now if you have your own Ajaokuta running, imagine how many jobs it will create, how many taxes will come into the government, how many VAT will come into the government.”
According to him, Nigeria’s debt servicing rate is fair given the prevailing market rates in the global space.
He said: “Let’s look at debt ratio, debt servicing, the money you are bringing in is called capital injection.
“Allow the Tinubu administration to open up the economy. You cannot be taking loan at 30% interest rate and you say don’t borrow. Who can do business at 30% interest rate?
“You cannot compare Nigeria’s debt portfolio to America’s. Today, America’s debt is about $45 trillion but they owe no one. They simply print dollars and send it to the country because dollar is a global currency.
“Why don’t you talk about the fact that we can’t find the impact of Boko Haram again, do you see Boko Haram coming to Abuja as it was during the previous administration?
“If you bring N100 billion and say this is what we want to spend this money on and anyone who doesn’t spend it right will face public execution, no one will steal again.
“If you look at what Jonathan left when he was leaving government, it was $18 billion, but Buhari left it at a deficit of unknown numbers, so Buhari administration is a perfect example of what you have said – who left the economy in financial problems but now we are back.”
“One thing about Tinubu is that he will not steal Nigeria’s money, steal for what, he was comfortable before he came in,” he argued.
