Commissioner-designate for Finance in Lagos, Mr Ayodeji Gbeleyi, said on Friday that Lagos State government with Gross Domestic Product (GDP) worth of N13 trillion ($87bn) has ample capacity to borrow and invest such in productive infrastructure to continue to grow her economy.

Gbeleyi made this declaration on the floor of the state House of Assembly while fielding questions from members before he was finally confirmed as the new Commissioner for Finance.

Gbeleyi, who is expected to be sworn in by Governor Babatunde Raji Fashola, will take over from Mr Tokunbo Abiru, who recently resigned from the state’s cabinet to take a banking job.

The commissioner-designate, while responding to a question posed on the implication of borrowing by a member of the House, Hon Wahab Alawiye-King, said there was nothing wrong with borrowing, as long as it was channeled into productive investment.

Gbeleyi, in his submission, noted that major economies of the world today, including the United States thrived on borrowing despite the current economic recession, but cautioned that such borrowing must be made in a responsible and productive manner.

“What we, however, need to do is borrowing in a responsible and productive manner. We must not borrow for day-to-day activities, but borrowing to invest in infrastructural development like the current light rail project. If we do, there is no quantifying its impact on the state economy,” he said.

Gbeleyi’s confirmation as the new Commissioner for Finance in the state followed a letter written by the governor to the House and read on the floor of the Assembly yesterday.

The governor had in the letter nominated Gbeleyi to replace Abiru, who resigned few days ago to take up appointment on the board of the First Bank of Nigeria Plc.

Gbeleyi, until his new appointment, is the Director General of the state’s office of Public-Private Partnerships (PPP) and Special Adviser to the governor on PPP.
http://www.tribune.com.ng/news2013/index.php/en/news/item/18238-%E2%80%98lagos-gdp-hits-n13trn,-safe-to-borrow%E2%80%99.html

Responsible borrowing is the watchword.