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Jimoh Ibrahim, the Senator-elect representing Ondo South says it’s possible for Nigeria to pay back its ₦77 trillion debts in 90 days.
The billionaire businessman said Nigeria’s current debt profile should not be a source of worry for President Bola Ahmed Tinubu because he can give him a strategy that’ll help him pay the debts.
Ibrahim said this while speaking on Channels TV Politics Today on Tuesday, June 6, 2023.
He said, “I can give you a strategy that will help pay back all of Nigeria’s debt in 90 days. Our current debt shouldn’t be a big problem or source of worry for President Bola Tinubu. What is the debt ratio to the GDP of a country? Nigeria’s is currently around 31 per cent, which means we have a window of about 70 per cent to borrow more money.
“Nigeria is wasting its time not borrowing more money. Dubai is owning $167bn and has a population of 12 million and 3 million indigenous people and they borrowed $167bn. They developed a plan to boost their infrastructure facilities and today everything is fine in Dubai whilst paying their debts back with ease.”
Breaking down his debt repayment strategy, the businessman explained that a loan of $100bn from five EXIM bank consortiums with a repayment plan for 40 years and a ten-year moratorium will make the country free of debts.
He added that the current revenue problem won’t affect the repayment of the $100bn loan.
“What you need to do is call together about five EXIM banks including China’s, and take a loan of about five times what we are owing currently. Do a bridge gap financing and then pay off what you owe and have a surplus. Prepare a re-payment program for 40 years and then have an honorarium period of ten years and you are out of the debt. With these, you can negotiate with the creditor for a 30 percent discount.
“Within that period, put your house in order and then you have money to develop your economy. How much can we make from oil revenue, get an action plan on how to diversify the economy and within ten years we could have a holistic well-defined road map financially,” he explained.
The Debt management office has declared that Nigeria is currently owing creditors about ₦77tn.
The country's total public debt rose to ₦77 trillion naira ($172 billion) from ₦44 trillion after a loan-to-bond swap and new borrowings to fund the 2023 budget.