Oshiomhole backs Tinubu's loan plan, says it's for infrastructure

Adams Oshiomhole, the Senator for Edo North, has come out in support of President Bola Tinubu's recent plan to borrow money. He explained that the loans are aimed at fixing Nigeria's infrastructure problems, not for paying salaries or covering regular expenses.

Oshiomhole, who was once the governor of Edo State, mentioned that these loans would allow the government to invest in important infrastructure and boost economic growth.

He made these comments during an interview on TVC’s Beyond the Headline. He pointed out that the president's loan request has been formally submitted to the Senate and sent to the Committee on Local and Foreign Debts for review.

The senator emphasized that Nigeria must consistently invest in infrastructure to achieve economic growth and break what he called a cycle of underdevelopment. "I think this is what this additional payment is meant to address," he said, defending the need for loans to finance projects that cannot be funded right away from available money.

He argued that Nigeria cannot wait until it has enough money to fully fund necessary investments. "We are here now and we have to be able to borrow," he said.

Oshiomhole also stated that Nigeria's ability to borrow from foreign sources shows some level of credibility. He added that borrowing in foreign currencies can help local businesses avoid getting squeezed out of the local credit market.

He outlined the government's choices: either stop borrowing and slow down infrastructure development or take long-term loans to fund projects that could grow the economy and create the resources needed to repay the debt. "Stop borrowing, stop development, stop funding infrastructure, keep lamenting what they’ve done there, or take the bold step, get long-term loans that are sustainable, grow the economy in a manner that it will generate enough prosperity to settle those loans," he said.

Mr Oshiomhole made it clear that the president's letter stated these loans are not meant for salaries, allowances or any regular expenses. Still, he did not want to predict what the Senate committee would decide, saying they need to review the request and offer their advice to the full Senate for discussion.

He expressed confidence that the Senate would back the proposal. He reasoned that lawmakers can't keep complaining about Nigeria's poor road conditions while opposing borrowing meant to fix and improve the roads.

He noted that Nigeria's large land area makes it hard to depend only on road transport. He insisted that investing in infrastructure is crucial for connecting economic zones, delivering goods to consumers, and moving raw materials to factories.

Oshiomhole also responded to criticism from former Vice-President Atiku Abubakar, who is the presidential candidate for the African Democratic Congress (ADC). He said Atiku has the right to his views.

He mentioned that criticism is part of democracy and that opposition lawmakers should use their positions to ask questions about the proposed loans. Oshiomhole said the government should provide clear answers to the questions raised but warned that this scrutiny should not block development.

He pointed out that borrowing is not new for Nigeria. He remarked that other countries, like the United Kingdom and the United States, also discuss issues around increasing public debt.

The senator explained that he understands discussions around public borrowing in other nations. He believes that governments must make tough economic choices to satisfy their development needs. He said opposition parties in Nigeria often reject government policies even when they see some of them as necessary, though he does not blame Atiku for questioning the proposal.

Oshiomhole defended his own history of speaking out against government decisions he disagreed with, stating that his loyalty to the ruling party does not stop him from criticizing policies he believes are wrong.

He said accountability is key in democracy, and the government must explain its plans to Nigerians. Yet, he insisted that the need for explanations should not delay governance or infrastructure projects.

Oshiomhole mentioned that reliable electricity is vital to Tinubu’s plan to attract industries and boost manufacturing in Nigeria. He argued that manufacturers would not return in large numbers if they continue relying on generators due to poor power supply.

The senator also took a jab at Atiku’s record on power sector privatization, criticizing how public funds for electricity were handled during the former vice-president’s administration. He claimed that $16 billion spent on the power sector then did not yield the expected results.

He claimed that the current government faces the need to borrow to fix infrastructure issues that past governments did not resolve. Comparing the new borrowing to the spending on power under the previous administration, he explained that inflation has changed the value of money. Thus, the proposed $22 billion is not worth as much now as the $16 billion that was spent back then.

Oshiomhole cited China as an example of a country that achieved lasting economic growth through long-term investments in infrastructure like roads, railways, and electricity. He said such investments are necessary to reduce poverty and create jobs.

He concluded that Nigeria's main challenge is to generate enough jobs so that citizens can benefit from the economic changes that Tinubu's government is trying to implement, which he said the opposition wants to reverse.