Eko koni baje (Lagos will be better) is the slogan which Governor Babatunde Fashola of Lagos state has been known for from the inception of his administration and his effort to restructure Lagos state must be commended considering the government of his predecessors.

Amidst the successes recorded by governor Fashola’s government, the external debt which Lagos state as incurred during his tenure is an issue of great concern to the people of Lagos state.

The recent attempt by the Governor of Lagos State to justify the external loan debt of N160bn is irrational and a glaring ploy by the governor to mortgage the future of the people of the state if the lending spree is not curtailed on time.

Despite its massive internally generated revenue and huge federal allocation (Lagos state allocation estimated at N30b), Lagos is sinking in debt! What is shocking is the level of secrecy surrounding this debt profile, the state is not forthcoming on the actual amount owed external creditors just as a high level of secrecy surrounds the exact amount of internally generated revenue, IGR. Available records indicate that 24 billion naira is collected monthly as IGR, using former governor Bola Tinubu's company, Alpha Beta as agents, but experts say the amount could quite higher.

Statistics obtained from the website of the Debt Management Office in Abuja on Wednesday 3rd September 2014 as reported by Punch showed that out of the total external debt of $3.01bn, Lagos State owes a whooping one-third of this external debt at $1.02bn, leaving the remaining 35 states and the Federal Capital Territory sharing two-thirds of the debt among themselves at $1.99bn as of June 30, 2014. Further analysis shows that out of the $1.02bn external loan commitments, $937.91m was from multilateral bodies, while $82.5m represented loans contracted from bilateral sources.

How does Governor Fashola intend to pay back such huge debt? Does he have plans to pay back during his term in office or does he want the state be perpetually indebted? He postulated he will counterbalance these debts through taxation.

It is indeed an afterthought for the governor to claim to have spent the loan on infrastructure. The major infrastructure is the light-rail project and which was presented as public-private Investment. What is, therefore, the amount contributed by the private investor who is eventually taking the concessionaire?

In order to be able to offset this huge and outrageous external debt, Governor Fashola has resorted to heavily tax the people of Lagos state and those doing business in Lagos which has made life very difficult presently in Lagos State for the people.

The heavy taxation on companies and individuals has led to most of the big companies and firms relocating their head offices to Ogun State leaving only liaison offices in Lagos. It has also made cost of living in Lagos high, ranging from housing, to transportation, to feeding and other basic amenities. Price of everything has skyrocketed.

It is not enough for Governor Fashola who is a Senior Advocate of Nigeria to excuse the debt with population like he postulated. He should be able to provide data on how these external debts collected have been used in developing the state and providing necessary infrastructures for the survival of the common man, as well as the avenues and strategies that has been put on ground to offset this huge debt.

Even though Fashola has smartly accused the Federal Ministry of Finance of complicity in the present case, the Ministry owes a responsibility to investigate and inquire into the outrageous external loan which the governments of Lagos and other affected states have borrowed which could forever enslave the people of Lagos state. The mantle also falls on the people of the state to call their governor to order and ask probing questions on how these external loans are being utilised and the medium which the government has provided to pay back the debt without mortgaging the state.

Lastly, there should be an update of the state’s debt profile. These incessant loans by an outgoing Governor are aimed at punishing the incoming administration and the state in particular.

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