Jimoh Ibrahim: $2bn Insignificant, Nigeria Needs to Borrow over $50bn

*Disagrees with Obasanjo’s claim on Nigeria’s failed state status

Nume Ekeghe

The senator representing Ondo South District,  Jimoh Ibrahim, yesterday  called on President Bola Tinubu to prioritise borrowing substantial amounts of what he termed “good money” to invest in critical infrastructure that will stimulate economic growth.
He urged the federal government to pursue a significant loan of at least $50 billion to address critical infrastructure deficits and economic stagnation.
Speaking on Channels TV, the billionaire-turned-politician dismissed the recently approved $2.2 billion loan as ‘insignificant’, arguing that incremental borrowing does little to resolve Nigeria’s fiscal challenges.
“To be realistic, you need to borrow good money, not all these $2 billion. You can raise bonds. If Mr. President decides to visit the United States and launch a national bond at 10 years for 10 per cent, you will get $100 billion,” he stated.
Citing Dubai’s $168 billion infrastructure driven transformation as an example, Ibrahim emphasised that strategic borrowing can yield significant economic benefits if properly managed.
He added: “Dubai borrowed $168 billion and used it for infrastructural development, which now drives tourism and innovation. Nigeria must follow this path to remain competitive globally.”
The senator’s comments is coming against the backdrop of the federal government seeking the National Assembly’s approval for a fresh N1.767 trillion external borrowing plan to partly finance the 2024 budget deficit.
Ibrahim urged the administration to ensure that any fund borrowed is directed toward transformative projects.
Also, addressing former President Olusegun Obasanjo’s recent comments at the Chinua Achebe Leadership Forum at Yale University, where he described Nigeria as a failing state, Ibrahim disagreed, saying such remarks were unhelpful and did not reflect the nation’s true position.
He said: “I disagree with President Obasanjo that Nigeria is a failed state. We are in peacetime, and the language of war is unnecessary. Developing countries are often referred to as failed states in international relations. Does that diminish their potential? No.”
Ibrahim highlighted Tinubu’s reforms, including the removal of fuel subsidies, as signs of progress and noted that international institutions like the International Monetary Fund (IMF) are supportive of the administration’s economic direction.
“Tinubu is implementing bold reforms that will reshape the economy, and these efforts are gaining global recognition,” he said.
He further proposed negotiating debt forgiveness or restructuring as a larger borrowing strategy.
“If we borrow $100 billion, we can renegotiate and pay off existing debts with part of the new funds while using the remainder for development. Debt forgiveness is achievable if aligned with global policy conditions.
“The alternative fiscal austerity and underinvestment will only deepen unemployment, food insecurity, and naira depreciation,” he added.
In response to a question that suggests Nigeria’s borrowing history has raised concerns about accountability and the misuse of borrowed funds, Ibrahim called for stringent safeguards, including legislative oversight and legal penalties for the diversion of funds.
“If the National Assembly lists 50 projects for funding, any deviation should result in severe penalties. This will instil discipline and ensure that loans are used effectively,” he said.
Besides , Ibrahim defended President Bola Tinubu’s economic agenda, including securing international credit.

“President Tinubu has established global legitimacy, attracting interest from potential lenders. However, the focus must shift to securing large-scale loans to unlock transformative growth,” he stated.