Senator Jimoh Ibrahim has made a compelling case for strategic borrowing as a means to drive economic growth and development.
Ibrahim, a lawmaker representing Ondo South Senatorial District in the National Assembly, emphasised the importance of leveraging debt financing to address critical infrastructure needs and stimulate economic activity.
Ibrahim spoke when he appeared on Channels TV Politics Today on Monday evening.
He said, “If you don’t borrow to run the economy, what do you want to do? Where do you want to get the fund to run the economy?”
He pointed to the example of Dubai, a nation that has successfully utilised debt to transform itself into a global hub of commerce and innovation.
“Dubai, with the population of 12 million people in total, is owing 168 billion dollars,” Ibrahim stated.
“And look at what they have used the money to do? They are paying back now at $10 billion a month.”
Ibrahim drew a contrast between Dubai’s proactive approach to borrowing and Nigeria’s more cautious stance.
“Now, Nigeria, with a population of 250 million people, is owing $77 million,” he noted.
“So, the key issue here has to do with the fact that you must borrow to run the economy.”
While acknowledging the need for responsible debt management, Ibrahim stressed the potential benefits of strategic borrowing.
“What I said last time is that they should clear the existing debt, then go into fresh borrowing, get a moratorium period, relax, and then come back home and find out where they got it wrong, and then face infrastructural development,” he explained.
