Senator Jimoh Ibrahim, representing Ondo South in the Senate, reiterated his stance that Nigeria’s economic growth hinges on continued borrowing by the federal government to meet its financial commitments. Responding to inquiries about his earlier endorsement of increased government borrowing, Ibrahim emphasized that no country develops its infrastructure without securing financial loans from foreign nations during an appearance on Channel TV’s Politics Today.
Drawing a comparison, he pointed out that Dubai, UAE, with a population of 12 million, carries over $168 billion in foreign debt, while Nigeria, with ten times the population, has approximately $77 billion in public debt. Ibrahim asserted that borrowing is essential for the Federal Government to construct vital infrastructure, enabling repayment in the long run.
“If you don’t borrow to run the economy, what do you want to do? Where do you want to get the funds to run the economy?” questioned Ibrahim. He cited Dubai’s successful use of borrowed funds for development, with a repayment rate of $10 billion per month.
Debating COP28 Delegation Size
In addition, Senator Ibrahim, Chairman of the Senate Committee on Inter-Parliamentary Affairs, defended the size of the delegation led by President Bola Tinubu at the COP28 Climate Summit in Dubai, UAE. Addressing concerns about the number of delegates, Ibrahim justified the 422 individuals sponsored by the federal government, refuting the initially speculated 1,411. He argued that the number was justifiable, considering Nigeria’s potential future hosting of such events.
According to Ibrahim, funding over 400 people for a conference of this nature is insufficient. He highlighted the role of the number of delegates in shaping knowledge dissemination, especially regarding Nigeria’s challenges with environmental pollution. The Senator stressed that a lean delegation accompanying President Tinubu would not be taken as seriously by the international community.
Economic Indicators Raise Concerns
As of June 2023, Nigeria’s debt-to-Gross Domestic Product (GDP) ratio is 38.4%. The Debt Management Office (DMO) reports that Nigeria’s debt service-to-revenue ratio in 2023 is 73.5%, describing this figure as unsustainable and a potential threat. With Nigeria’s total debt reaching N87.38 trillion ($113.42 billion), encompassing both domestic and external debts of the Federal Government, the thirty-six states, and the Federal Capital Territory, the call for continued borrowing sparks controversy and raises timeliness concerns.
