The lawmaker representing Ondo South in the National Assembly, Jimoh Ibrahim, on Tuesday defended the Federal Government’s planned borrowings.
Ibrahim who on Tuesday said the current administration should borrow what he described as good money.
“To be realistic, you need to borrow good money, not all these $2 billion,” he said.
When asked his definition of ‘good money’, the lawmaker said: “Anything above $50 billion.”
“You can raise bonds. If Mr President decides to visit the United States and launch the nation bond at 10 years at 10 per cent, you will get a $100 billion.”
President Bola Tinubu has asked the National Assembly to approve a fresh N1.767trn external borrowing plan in support of the 2024 Budget.
The president conveyed his request in a letter written to Senate President Godswill Akpabio and Speaker of the House of Representatives, Tajudeen Abbas. He said if approved, the loan would be used to partly finance the N9.7trn deficit in the 2024 budget.
But the lawmaker urged Tinubu to ensure that the borrowings should be channels towards infrastructural projects.
He cited Dubai, in the United Arab Emirates (UAE) as an instance, saying the Middle East nation borrowed a $168 billion loan that was channelled into tourism, innovation, and technology.
“Everybody wants to go to Dubai. Where did Dubai get the money from? Dubai got the money by borrowing $168 billion and using it for infrastructural development in such a way that you can have the number of people going to Dubai today and the number of dollars that they go with is enormous.
“Dubai is paying back by $20 billion every other year. If the lending market disappears, where are you going to get the money from?
“The key issue is that if you borrow and develop your infrastructure, you are better off,” Ibrahim stated.
Peoplesmind
