Senator Jimoh Ibrahim has downplayed the significance of a $2.2 billion loan proposed by President Bola Tinubu’s administration, describing it as “lunch money” for a country of Nigeria’s size. The senator, representing Ondo South Senatorial District, made the remarks during an interview on Channels Television.
Defending the loan request, Ibrahim emphasized the importance of borrowing for national development. *“$2 billion for 250 million people to finance a deficit budget is insignificant. We need to encourage the government to borrow more,”* he said. He added that deficit budgets are key to economic progress, citing the potential for infrastructure and industrial development.
As an example, Ibrahim referred to the potential benefits of funding the Ajaokuta Steel Company, arguing that investments in such projects could generate jobs, increase tax revenue, and boost economic activity. *“If you have your own Ajaokuta running, imagine how many jobs it will create,”* he explained.
Addressing concerns about Nigeria’s debt servicing obligations, Ibrahim dismissed comparisons to other countries, highlighting that debt can serve as a capital injection to stimulate the economy. He also pointed out that the debt servicing rates are reasonable within global market standards.
Ibrahim also criticized previous administrations for mismanagement, contrasting their records with Tinubu’s leadership. *“One thing about Tinubu is that he will not steal Nigeria’s money. He was comfortable before he came in,”* he argued.
The loan proposal comes amid growing concerns over Nigeria’s rising debt burden. Recent reports reveal that in just eight months, Nigeria spent N7.4 trillion on debt servicing, more than double the N3.6 trillion allocated for capital expenditures.
Despite the controversy, Ibrahim urged Nigerians to support the government’s borrowing plans, insisting that they are necessary for economic growth.
