Tinubu’s $2.2 Billion Loan Request Is Lunch Money; We Should Encourage More Borrowing – Senator Jimoh Ibrahim

In a recent interview on Channels TV, Senator Jimoh Ibrahim expressed strong support for the Bola Tinubu administration’s decision to seek a $2.2 billion loan, dismissing concerns about the borrowing as unwarranted. Representing Ondo South Senatorial District, the senator described the proposed amount as “too insignificant” and likened it to “lunch money,” emphasizing that such borrowing is necessary for national development.

Ibrahim argued that spreading $2.2 billion across Nigeria’s 250 million population to finance a budget deficit was a commendable move. He urged citizens to encourage the government to borrow more, stating that deficit budgets are often catalysts for economic progress. According to him, if the loan proposal reaches Senate committees, resistance is unlikely since the funds are intended for developmental purposes, not frivolity.

The senator cited the Ajaokuta Steel Company Limited as an example of borrowing for development, highlighting its potential to boost industrial activity, create jobs, and generate revenue through taxes and value-added taxes (VAT). He explained that borrowing should be seen as a form of capital injection that can revitalize the economy when properly utilized.

Addressing concerns about Nigeria’s debt servicing, Ibrahim claimed that the country’s debt portfolio remains manageable compared to global benchmarks. He pointed to the United States, which has a national debt of approximately $45 trillion but faces no immediate financial constraints due to the global dominance of the dollar. He also noted that Nigeria’s current debt servicing rates are aligned with prevailing international market conditions.

Ibrahim went on to defend Tinubu’s leadership, contrasting it with previous administrations. He argued that under President Goodluck Jonathan, Nigeria’s reserves stood at $18 billion, while the Buhari administration left the economy in a worsened fiscal state. He attributed the absence of security threats such as Boko Haram in Abuja to improved governance and maintained that Tinubu has no intention of misappropriating public funds.