Havard Scholar, Senator Jimoh Ibrahim has made a strong case for strategic borrowing as a possible means to drive economic growth and development in the country.
Senator Ibrahim, is the current Senator representing the good people of Ondo South in the red chamber.
The lawmaker, who was awarded a professional Business Doctorate (BusD) by the University of Cambridge, United Kingdom, stressed the importance of leveraging debt financing to address critical infrastructure needs and stimulate economic activity.
Ibrahim made this known while answering questions from Seun Okibaloye on Channels TV Politics Today yesterday evening.
In his statement:“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?
Buttresing on the argument, Ibrahim 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.
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.
