Senator Jimoh Ibrahim (Ondo South), on Thursday, urged President Bola Tinubu to source funds from the global market for national development before lending opportunities diminish.

Ibrahim, an ambassador-designate, made the call while fielding questions from journalists at the end of the Senate Committee on Finance’s interactive session with the Federal Government’s economic team.

He argued that borrowing had become imperative to fill the huge deficit created by the administration of former President Muhammadu Buhari, which he accused of printing about $33 billion domestically through Ways and Means and borrowing $68 billion externally to finance the economy.

He said: “The Federal Government will be wasting time if it does not borrow now, because the global lending market may soon dry up. And once that happens, even when you want to borrow, you may not be able to access funds. The strategy is to secure sufficient resources now for development and begin structured repayment.”

Drawing comparisons with other economies, Ibrahim noted that Dubai, with a population of about 12 million people, owes roughly $186 billion, while Nigeria’s total debt stands at about $103 billion.

“Dubai has finished borrowing and is now repaying about $20 billion yearly because it has the revenue to do so. If you don’t borrow, how do you develop? Borrowing is a necessary gear in development,” he said.

He likened borrowing to shifting a vehicle into a higher gear to accelerate growth, stressing that development requires significant capital outlay.

According to him, the United States has a debt-to-GDP ratio of about 127 per cent, while the United Kingdom’s ratio is around 95 per cent. He added that Nigeria’s ratio of about 40 per cent suggests there is still room for additional borrowing.

“So, if Nigeria’s debt-to-GDP ratio is 40 per cent, there is still about 60 per cent room to borrow. If the lending market disappears, you cannot lend to yourself,” he stated.

On repayment, the lawmaker explained that debt repayment is usually long-term and not expected to be completed within a year, adding that borrowing could be structured over 10 to 20 years to ease fiscal pressure.

He also referenced previous borrowings approved by the National Assembly, noting that government must seek resolutions to roll over maturing debts as part of effective debt management.

Commenting on the previous administration’s Ways and Means policy, Ibrahim said the domestic financing approach had long-term inflationary implications.

“When we talk about borrowing, the Buhari administration used Ways and Means of about $33 billion, meaning significant domestic money creation, alongside $68 billion external borrowing. Clearing the effects cannot be done in two years. Expecting Tinubu to do so would be unrealistic,” he said.

He warned that excessive monetary financing could fuel inflation, unemployment, and currency depreciation, stressing that prudent borrowing combined with strong revenue generation remains critical to stabilising the economy.