{"id":3205,"date":"2024-11-21T08:07:41","date_gmt":"2024-11-21T08:07:41","guid":{"rendered":"https:\/\/beadysword.com.ng\/blog\/?p=3205"},"modified":"2024-11-21T08:09:04","modified_gmt":"2024-11-21T08:09:04","slug":"tinubus-fresh-2-2billion-loan-is-lunch-money-says-senator-jimoh-ibrahim","status":"publish","type":"post","link":"https:\/\/beadysword.com.ng\/blog\/2024\/11\/21\/tinubus-fresh-2-2billion-loan-is-lunch-money-says-senator-jimoh-ibrahim\/","title":{"rendered":"Tinubu\u2019s Fresh $2.2Billion Loan Is \u2018Lunch Money,\u2019 Says Senator Jimoh Ibrahim"},"content":{"rendered":"
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senator Jimoh Ibrahim has defended the new loan request by President Bola Tinubu\u2019s administration.<\/p>\n

The lawmaker representing Ondo South Senatorial District, shared his view while appearing as a guest on Channels TV on Tuesday.<\/p>\n

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According to him, borrowing $2.2 billion for a population of 250 million persons is not a bad idea.<\/p>\n

Ibrahim described the $2.2 billion Tinubu\u2019s administration has proposed to borrow as \u201ctoo insignificant, minute money,\u201d adding that \u201cthis is just lunch money\u201d.<\/p>\n

\u201c$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,\u201d he said.<\/p>\n

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He said, \u201cA deficit budget helps in economic development. If this loan comes to our committees, I don\u2019t think anyone is going to say he is against it. For what?<\/p>\n

He argued that the country borrows for development, citing the instance of borrowing to fund Ajaokuta Steel Company Limited.<\/p>\n

\u201cDo you borrow to put in your bedroom? You are borrowing for development,\u201d he said.<\/p>\n

\u201cLet\u2019s take a scenario as a case study if you borrow money for Ajaokuta funding,\u201d he added.<\/p>\n

\u201c30% of houses you build in this country 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.\u201d<\/p>\n

Senator Ibrahim also stated that Nigeria\u2019s debt servicing rate is fair given the prevailing market rates in the global space.<\/p>\n

He said, \u201cLet\u2019s 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 a loan at 30% interest rate and you say you don\u2019t borrow. Who can do business at 30% interest rate?<\/p>\n

\u201cYou cannot compare Nigeria\u2019s debt portfolio to America\u2019s. Today, America\u2019s debt is about $45 trillion but they owe no one. They simply print dollars and send it to the country because the dollar is a global currency.<\/p>\n

\u201cWhy don\u2019t you talk about the fact that we can\u2019t find the impact of Boko Haram again, do you see Boko Haram coming to Abuja as it was during the previous administration?<\/p>\n

\u201cIf you bring N100 billion and say this is what we want to spend this money on and anyone who doesn\u2019t spend it right will face public execution, no one will steal again.<\/p>\n

\u201cIf 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.\u201d<\/p>\n

\u201cOne thing about Tinubu is that he will not steal Nigeria\u2019s money, steal for what, he was comfortable before he came in,\u201d he argued.<\/p>\n

Nigeria’s loan acquisition has raised eyebrows lately, and for good reason.\u00a0 in just eight months, Nigeria spent N7.4 trillion on debt servicing, dwarfing the N3.6 trillion spent on capital expenditure.<\/p>\n