reporter?:


The governor was not referring to size of the economy, but economic ratings by organisations such as Fitch, S&P, Moody, Egan-Jones, Nigeria Bureau of Stats etc.
Next time, try to comprehend within the context of a text before criticizing.

bros don't mind them, is Lagos not kano or Anambra.

Smartwave: bros don't mind them, is Lagos not kano or Anambra.

please provide these ratings by Fitch and co, let us see the text of the ratings and see if it supports Fashola's claim that Lagos economy is rated above UK.

I stand by my argument that the Governor mispoke

mikeansy: The mark of being an educated man is in the face of debates or arguments you provide superior evidence or facts to justify your position.

Fashola said the "Economy of Lagos is now rated above Ghana and United Kingdom"

Can those defending Fashola in clear terms provide the metrics of this rating and also provide superior facts supporting how under any criteria recognised internationally Lagos State Economy is now rated above the United Kingdom.

Please while you are at it remember that eventhough Lagos may at this time have higher economic growth rate than London or UK . . .that is still not enough to claim that the economy of Lagos is rated better UK.

No abuses, just facts and evidence will do!!!!!!!!!!!!!!

Lagos State Gets ‘AA (nga)’ Ratings from Fitch

Fitch Ratings, renowned global rating agency, has revised the Outlook on Lagos states’ ‘National Long-term rating’ to Positive from Stable, and subsequently affirmed it at 'AA(nga)'.

The agency has simultaneously affirmed the Long-term foreign and local currency ratings at 'BB-' with Stable Outlooks, Short-term foreign currency rating at 'B' and the Long-term ratings of the N50billion and N57.5billion bonds, maturing in 2014 and 2017 at 'BB-' and 'AA(nga)'.

The agency issued a statement yesterday with several key indicators affirming the robust Lagos state management – (full text of statement).

Key Rating Drivers
The Outlook revision reflects the state's increasing sophistication in management reflected by improving transparency and debt management amid moves towards a balanced budget by 2015 from a peak deficit of 25% of revenues in 2012 according to preliminary figures, and a stable debt cover ratio by the current balance around three years.

A growing proportion of bond issues, with fixed repayment schedules, longer maturities and monthly provisions intothe debt reserves fund, are replacing the traditional concentration of short-term bank loans. Fitch views this as a sign of the state's improving debt management.

Together with budgets and quarterly performance reports, Fitch notes continual improvements in transparency and governance.

Fuelled by public and private investments, as well as an estimated population of about 20 million according to state officials, Lagos's diverse economy is the leading contributor to Nigerian GDP. Fitch expects the 10% growth in the local economy and the state's plans to widen the tax base and improve collection methods to boost local tax

receipts towardsN330billion by 2015, up from N200billion in 2012, edging towards 80% of annual revenues from 70% of income in the late 2000s.

Maintenance costs for infrastructure built and provision of social services such as health and education could add pressure to Lagos's budget.

However, Fitch expects the state's commitment to streamlining costs coupled with the maintenance of a steady employee headcount to contain their growth to about 10% per annum over 2013-2015. Rising energy prices meant costs grew by about 25% in 2012, and Fitch expects Lagos's operating expenses to rise to about N230bn by 2015 from N185billion in 2012.

Fitch expects capital spending to remain high at about N250 illion per year over the medium term, as the state continues to invest in transport, water, health, education and social protection.

Despite interest expenses rising towards NGN40bn by 2015, the state's self-financing ratio of investments will remain strong with the current balance funding about 75% of capital expenditure from an average 65% in 2010/12.

The state's debt will likely stabilise around NGN350bn by 2015, net of repayment provisions, with bonds representing about 50% of total debt from about 30% in 2009.

As Lagos stands out for its low dependence on federal allocation and high tax generation, the state was allowed to incur debt accounting for about 100% of revenues rather than the 50% limit stated by Nigerian borrowing guidelines for subnationals.

The debt service coverage ratio could likely remain at around 2.5x the operating balance offering additional comfort of debt service sustainability.
[size=18pt]Enjoy[/size]

bigboyk: My guy, I don't mean to insult you, but you sound highly uninformed and ignorant. I doubt if you know anything happening in other places apart from what happens in your locality. You sound like someone who relies on hearsay. Fashola had people like you in mind when he said what he did. He knows most of his people are easy to decieve. Guy, try not to be intellectually lazy. Travel out and see things for yourself or try and use your bandwidth to read more rather than making dumb posts.

Bros, am 23 years old but by God grace, i have traveled 23 countries in Africa. I was n't born in Nigeria i was in Gabon and am currently working with Nigeria company in Ghana. My boss got contract from Glo Network to instilled network mass in Ghana. For past 3 years now we have being instilling Glo network mass across Ghana. I know 98% of Ghana and i have more than 72 Ghana Members of Paliament phone numbers. As am writing to u know now am in Garu, a District in Upper East Region of Ghana to instilled Glo network mass for them. I have being to 242 Districts in Ghana and i have also being to I0 Regions of Ghana. I know in and out of Ghana. From Aflao to Elubo, Bawku to Wa, Tamale to Kumasi. Bolgatanga to Ho etc. So when am saying something about Ghana, i know what am saying.

So you guys are talking about Credit rating then? which affects Lagos State's ability to borrow money from Internation agencies!

That surely is different from Fashola's claim that the economy of Lagos is rated above UK and Ghana.

In fact at the heat of the debate about America's debt ceiling the failure of Republicans and Democrats to reach a deal. America's credit rating was revised and Germany had better outlook than US. Is that enough to make the claim that Germany's economy is rated above the US?

I can understand the quest to try to understand what Fashola is trying to say or should have said. But the fact is that the Governor mispoke!!!!!!!!!!!!!

mikeansy: So you guys are talking about Credit rating then? which affects Lagos State's ability to borrow money from Internation agencies!

That surely is different from Fashola's claim that the economy of Lagos is rated above UK and Ghana.

Based on your own not too good comprehension skills and you should not blame other people for this..

bigboyk: My guy, I don't mean to insult you, but you sound highly uninformed and ignorant. I doubt if you know anything happening in other places apart from what happens in your locality. You sound like someone who relies on hearsay. Fashola had people like you in mind when he said what he did. He knows most of his people are easy to decieve. Guy, try not to be intellectually lazy. Travel out and see things for yourself or try and use your bandwidth to read more rather than making dumb posts.

Bros i don't know Fashola and am not his party member. Bros, am 23 years old but by God grace, i have traveled 21 countries in Africa. I was n't born in Nigeria i was in Gabon and am currently working with Nigeria company in Ghana. My boss got contract from Glo Network to instilled network mass in Ghana. For past 3 years now we have being instilling Glo network mass across Ghana. I know 98% of Ghana and i have more than 72 Ghana Members of Paliament phone numbers including Hassan Ayarega, Ghana last election PNC presidential candidate . As am writing to u know now am in Garu, a District in Upper East Region of Ghana to instilled Glo network mass for them. I have being to 242 Districts in Ghana and i have also being to I0 Regions of Ghana. I know in and out of Ghana. From Aflao to Elubo, Bawku to Wa, Tamale to Kumasi. Bolgatanga to Ho etc. So when i said something about Ghana, i know what am saying.

mikeansy: So you guys are talking about Credit rating then? which affects Lagos State's ability to borrow money from Internation agencies!

That surely is different from Fashola's claim that the economy of Lagos is rated above UK and Ghana.

In fact at the heat of the debate about America's debt ceiling the failure of Republicans and Democrats to reach a deal. America's credit rating was revised and Germany had better outlook than US. Is that enough to make the claim that Germany's economy is rated above the US?

I can understand the quest to try to understand what Fashola is trying to say or should have said. But the fact is that the Governor mispoke!!!!!!!!!!!!!

When someone says an economy is 'RATED' simply the person is talking about ability to borrow and repay, budget and finance the budget without much worries. If you read the post I replied you, you will notice that all the factors Fitch considered before rating lagos state as positive, in the context of the current UK economic crisis, no sane human will rate the UK economy positive or even stable.

Afam4eva: Lagos economy is bigger than those of England, Scotland, Waled and N Ireland combined? Wetin we no go hear for this country. if these politicians must lie they should not be over-ambitious liars. I doubt is Lagos economy is even bigger than that of Glasgow or even Belfast.

mikeansy: So you guys are talking about Credit rating then? which affects Lagos State's ability to borrow money from Internation agencies!

That surely is different from Fashola's claim that the economy of Lagos is rated above UK and Ghana.

In fact at the heat of the debate about America's debt ceiling the failure of Republicans and Democrats to reach a deal. America's credit rating was revised and Germany had better outlook than US. Is that enough to make the claim that Germany's economy is rated above the US?

I can understand the quest to try to understand what Fashola is trying to say or should have said. But the fact is that the Governor mispoke!!!!!!!!!!!!!

This is exactly what we mean. He didn't understand the statement he made. Sadly, there aren't critical minded journalist present to seek further clarification. So this bogus statement will be accepted as fact by people and young 'uns

Goodysydney: Bros, am 23 years old but by God grace, i have traveled 23 countries in Africa. I was n't born in Nigeria i was in Gabon and am currently working with Nigeria company in Ghana. My boss got contract from Glo Network to instilled network mass in Ghana. For past 3 years now we have being instilling Glo network mass across Ghana. I know 98% of Ghana and i have more than 72 Ghana Members of Paliament phone numbers. As am writing to u know now am in Garu, a District in Upper East Region of Ghana to instilled Glo network mass for them. I have being to 242 Districts in Ghana and i have also being to I0 Regions of Ghana. I know in and out of Ghana. From Aflao to Elubo, Bawku to Wa, Tamale to Kumasi. Bolgatanga to Ho etc. So when am saying something about Ghana, i know what am saying.

Enjoy our hospitality, u won't get bombed, kidnapped etc..... and u can also enjoy GH pus.sy cuz we luv to share and wen u return to ur God forsaken hell hole, please don't forget to preach da gospel abt diz great country. Useless pri.ck mugugerian

Afam4eva: Lagos economy is bigger than those of England, Scotland, Waled and N Ireland combined? Wetin we no go hear for this country. if these politicians must lie they should not be over-ambitious liars. I doubt is Lagos economy is even bigger than that of Glasgow or even Belfast.

Seriously, an individual who cannot comprehend what an Economy RATING really means is a MOD

occam:

This is exactly what we mean. He didn't understand the statement he made. Sadly, there aren't critical minded journalist present to seek further clarification. So this bogus statement will be accepted as fact by people and young 'uns

You are the dumb individual who does not understand what RATINGS mean! First go educate yourself rightly....

Omo_Tier1:
Seriously, an individual who cannot comprehend what an Economy RATING really means is a MOD

I didn't take any exam to become a mod and i never realized that knowing what a credit rating means is a criteria for becoming a mod on Nairaland. SMH.

Omo_Tier1:
Lagos State Gets ‘AA (nga)’ Ratings from Fitch

Fitch Ratings, renowned global rating agency, has revised the Outlook on Lagos states’ ‘National Long-term rating’ to Positive from Stable, and subsequently affirmed it at 'AA(nga)'.

The agency has simultaneously affirmed the Long-term foreign and local currency ratings at 'BB-' with Stable Outlooks, Short-term foreign currency rating at 'B' and the Long-term ratings of the N50billion and N57.5billion bonds, maturing in 2014 and 2017 at 'BB-' and 'AA(nga)'.

The agency issued a statement yesterday with several key indicators affirming the robust Lagos state management – (full text of statement).

Key Rating Drivers
The Outlook revision reflects the state's increasing sophistication in management reflected by improving transparency and debt management amid moves towards a balanced budget by 2015 from a peak deficit of 25% of revenues in 2012 according to preliminary figures, and a stable debt cover ratio by the current balance around three years.

A growing proportion of bond issues, with fixed repayment schedules, longer maturities and monthly provisions intothe debt reserves fund, are replacing the traditional concentration of short-term bank loans. Fitch views this as a sign of the state's improving debt management.

Together with budgets and quarterly performance reports, Fitch notes continual improvements in transparency and governance.

Fuelled by public and private investments, as well as an estimated population of about 20 million according to state officials, Lagos's diverse economy is the leading contributor to Nigerian GDP. Fitch expects the 10% growth in the local economy and the state's plans to widen the tax base and improve collection methods to boost local tax

receipts towardsN330billion by 2015, up from N200billion in 2012, edging towards 80% of annual revenues from 70% of income in the late 2000s.

Maintenance costs for infrastructure built and provision of social services such as health and education could add pressure to Lagos's budget.

However, Fitch expects the state's commitment to streamlining costs coupled with the maintenance of a steady employee headcount to contain their growth to about 10% per annum over 2013-2015. Rising energy prices meant costs grew by about 25% in 2012, and Fitch expects Lagos's operating expenses to rise to about N230bn by 2015 from N185billion in 2012.

Fitch expects capital spending to remain high at about N250 illion per year over the medium term, as the state continues to invest in transport, water, health, education and social protection.

Despite interest expenses rising towards NGN40bn by 2015, the state's self-financing ratio of investments will remain strong with the current balance funding about 75% of capital expenditure from an average 65% in 2010/12.

The state's debt will likely stabilise around NGN350bn by 2015, net of repayment provisions, with bonds representing about 50% of total debt from about 30% in 2009.

As Lagos stands out for its low dependence on federal allocation and high tax generation, the state was allowed to incur debt accounting for about 100% of revenues rather than the 50% limit stated by Nigerian borrowing guidelines for subnationals.

The debt service coverage ratio could likely remain at around 2.5x the operating balance offering additional comfort of debt service sustainability.
[size=18pt]Enjoy[/size]

Think man. Does this tell you Lagos is rated above the U.K.?

U.K. was downgraded from top notch AAA to AA,

[quote author=Goodysydney] i was in Gabon and am currently working with Nigeria company in Ghana. CRAP!DO U KNOW D NOS OF NIGERIAN STATES SOME OF US HAVE VISITED?OR UR PRESIDENTS I HAVE MET? I'LL GET MY BOYS TO TRACK U IF INDEED U R ON GHANAIAN SOIL!

Afam4eva:
I didn't take any exam to become a mod and i never realized that knowing what a credit rating means is a criteria for becoming a mod on Nairaland. SMH.

You should realize that those who set themselves above others are expected to do excellently. A MOD that comments so ignorantly is the least of a MOD this forum needs.

occam:

This is exactly what we mean. He didn't understand the statement he made. Sadly, there aren't critical minded journalist present to seek further clarification. So this bogus statement will be accepted as fact by people and young 'uns

Unfortunately for you, what he said wasn't rocket science, it was plain english and you people having your own special interpretation and understanding that's different from the rest of the world means you all have comprehension problems. That's all.

Omo_Tier1:
You should realize that those who set themselves above others are expected to do excellently. A MOD that comments so ignorantly is the least of a MOD this forum needs.

For the sake of this argument, let's assume that my assertion was wrong. I'm not the head of politics of this section. My job is just to moderate comments and not the ignorance of those comments.

occam:

Think man. Does this tell you Lagos is rated above the U.K.?

U.K. was downgraded from top notch AAA to AA,

UK downgraded from AAA to AA WITH STABLE OUTLOOK and fitch warns it would downgrade it to NEGATIVE OUTLOOK if the budget does not address the deficit as expected. Lagos State revised 'AA' with POSITIVE OUTLOOK. So do you know understand which is 'RATED' higher

Omo_Tier1:
When someone says an economy is 'RATED' simply the person is talking about ability to borrow and repay, budget and finance the budget without much worries. If you read the post I replied you, you will notice that all the factors Fitch considered before rating lagos state as positive, in the context of the current UK economic crisis, no sane human will rate the UK economy positive or even stable.

who says "economic rating" is synonmous to "credit rating"?

Credit rating is a subset of economic rating, but economic rating involves other things like your GDP and size of your economy etc

Today I watched a documentary on the construction of the hong-kong international airport which was built on a man-made island created by sand-filling the space between two natural mountains.When you see stuffs like these you literally weep for this country!I haven't been to China or most foreign nations but am sure Fashola and the rest of them have;its very funny and equally appalling that they will do miniature projects and be fanning themselves.With the clear knowledge of what's happening outhere you should just work,find better ways to work and most importantly keep quiet!

Afam4eva:
For the sake of this argument, let's assume that my assertion was wrong. I'm not the head of politics of this section. My job is just to moderate comments and not the ignorance of those comments.

Afam, there is no need to defend the indefensible! That was a big let down and a Hoolala of a show There is nothing like assertion. The FACT is out there for anyone who cares to find it! RATINGS are never a measure of the size of an economy rather a "PROSPECT" of Her future.

mikeansy:

who says "economic rating" is synonmous to "credit rating"?

Credit rating is a subset of economic rating, but economic rating involves other things like your GDP and size of your economy etc

No Sir! You cannot do a Credit Rating without an Economic rating, but the difference is the component of government's ability to meet it obligations in terms of debt, funding of budgetary needs is a measure of the former, while the latter measures the output of the State Economic activities.

You guys should read well before posting your comments. Even the person from the UK got it all wrong. Fashola was talking about the credit rating (evaluation of a debtor's ability to
pay back her debt and the likelihood of
default.) of Lagos compare to those other countries. So be sure of what you are commenting on before pouring out those comments.

Afam4eva:
I didn't take any exam to become a mod and i never realized that knowing what a credit rating means is a criteria for becoming a mod on Nairaland. SMH.

Mental prudence and above average intelligence including basic knowledge in reading and comprehension should be a major MOD criteria.


Based on your poor display of reading and comprehension skills in this thread, no wonder you've made so many bogus mod calls and decisions on NL.

Omo_Tier1:
Afam, there is no need to defend the indefensible! That was a big let down and a Hoolala of a show There is nothing like assertion. The FACT is out there for anyone who cares to find it! RATINGS are never a measure of the size of an economy rather a "PROSPECT" of Her future.

So, what variables are used for determining the prospects of an economy? As far as i'm concerned, Fashola's assertion is empty and has no bearing.

Immune#1:
Today I watched a documentary on the construction of the hong-kong international airport which was built on a man-made island created by sand-filling the space between two natural mountains.When you see stuffs like these you literally weep for this country!I haven't been to China or most foreign nations but am sure Fashola and the rest of them have;its very funny and equally appalling that they will do miniature projects and be fanning themselves.With the clear knowledge of what's happening outhere you should just work,find better ways to work and most importantly keep quiet!

I am sure you have not seen EKO Atlantic project With the way Lagos State is going, if another government like that of Fashola takes root in Lagos for another 15years, those human wonders you are witnessing in China will be evident in Lagos!

Afam4eva:
So, what variables are used for determining the prospects of an economy? As far as i'm concerned, Fashola's assertion is empty and has no bearing.

The prospect of an economy, largely is affected by government's ability to meet her debt obligations, finance budgets, and balance her books. By so doing, she can have access to cheap funds to execute projects and expand her economy. In the case of UK, the government's ability to borrow money cheaply to fund certain projects and programme is severely dampened

ZUBY77:


You should be ashamed sometimes. Even if someone is paying you to defend him at all cost, you still have the right to avoid some topics. Doyin Okupe and Abati who earns more money than you are begining to say less while you who knows nada keeps ranting here. Fashola is far better and even educated than your GEJ., but ofcourse you will never agree

rubbish

Omo_Tier1:
I am sure you have not seen EKO Atlantic project With the way Lagos State is going, if another government like that of Fashola takes root in Lagos for another 15years, those human wonders you are witnessing in China will be evident in Lagos!

Lagos can't be there in the next 30years even with 3more Fasholas

Goodysydney: Bros i don't know Fashola and am not his party member. Bros, am 23 years old but by God grace, i have traveled 21 countries in Africa. I was n't born in Nigeria i was in Gabon and am currently working with Nigeria company in Ghana. My boss got contract from Glo Network to instilled network mass in Ghana. For past 3 years now we have being instilling Glo network mass across Ghana. I know 98% of Ghana and i have more than 72 Ghana Members of Paliament phone numbers including Hassan Ayarega, Ghana last election PNC presidential candidate . As am writing to u know now am in Garu, a District in Upper East Region of Ghana to instilled Glo network mass for them. I have being to 242 Districts in Ghana and i have also being to I0 Regions of Ghana. I know in and out of Ghana. From Aflao to Elubo, Bawku to Wa, Tamale to Kumasi. Bolgatanga to Ho etc. So when i said something about Ghana, i know what am saying.

You are an @SS. Just because you are well to do by any African country's standard doesn't mean Nigeria is better than Ghana.

If I were to move to your God forsken country today, and travel all around its breadth and width, I'd come across a lot of people begging me for a Naira. Heck, I probably wouldn't have to leave MMA to experience that.