Nigeria’s Senate recently sparked debate after Senator Jimoh Ibrahim described President Bola Tinubu’s proposed $2.2 billion loan as “lunch money” and “too insignificant.”
Ibrahim believes borrowing for development is necessary, citing the Ajaokuta Steel Company Limited as an example, which could create jobs and generate taxes.
“$2 billion to 250 million people to finance 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,” Senator Ibrahim stated.
According to Ibrahim, the loan will finance the deficit budget for the remaining 60 days of the year, benefiting Nigeria’s 250 million population.
He also noted that Nigeria’s debt servicing rate is reasonable compared to global market rates.
“I don’t think anyone is going to say he is against it… Do you borrow to put in your bedroom? You are borrowing for development,” Ibrahim added, emphasizing the importance of borrowing for economic growth.
