Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC - Politics - Nairaland
Nairaland Forum / Nairaland / General / Politics / Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC (16968 Views)
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| Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Omooba77: 6:17am On Mar 20, 2018 |
The debt status of most states of the federation exceeds 50 per cent of their annual revenues. For 18 states, the debt profiles exceed their gross and net revenues by more than 200 per cent. Lagos, Osun and Cross River states record over 480 per cent debt to gross revenue. The Fiscal Responsibility Commission, which stated this in its 2016 Annual Report obtained by our correspondent in Abuja on Monday, said the development was contrary to the guidelines of the Debt Management Office on debt sustainability. According to the guidelines, the debt status of each state should not exceed 50 per cent of the statutory revenue in the previous 12 months. The report stated, “In the light of the DMO’s guidelines on the Debt Management Framework, specifically, sections 222 to 273 of the Investment and Securities Act, 2007 pertaining to debt sustainability, according to the guidelines, the debt to income ratio of states should not exceed 50 per cent of the statutory revenue for the preceding 12 months.” However, an analysis presented in the FRC report showed that most states flouted the directive. In fact, the debt status of many states exceeded the debt to revenue ratio by more than 100 per cent. The analysis was based on the debt profile of the states as of December 31, 2016. The states with the highest debt to gross revenue ratios were Lagos (670.42 per cent), Osun (539.25 per cent), Cross River (486.49 per cent), Plateau (342.01 per cent), Oyo (339.56 per cent), Ekiti (339.34 per cent), Ogun (329.47 per cent), Kaduna (297.26 per cent) and Imo (292.82 per cent). Others were Edo (270.8 per cent), Adamawa (261.96 per cent), Delta (259.63 per cent), Bauchi (250.75 per cent), Nasarawa (250.36 per cent), Kogi (221.92 per cent), Enugu (207.49 per cent), Zamfara (204.91 per cent), and Kano (202.61 per cent). The debt to net revenue ratio of the states puts some of the states in even more precarious situations. The debt to net revenue of Lagos, for instance, is 930.96 per cent, while that of Cross River is 940.64 per cent. only states whose debt did not exceed the 50 per cent ratio by more than 100 per cent are Anambra, Borno, Jigawa, Kebbi, Sokoto, Yobe and the Federal Capital Territory. The debt to revenue ratio is very important in debt analysis as it can give an indication of the capacity of the debtor to service and repay the debt. However, the FRC noted that it should not be concluded that a state had over-borrowed because its debt to revenue ratio was more than 50 per cent. The report stated, “It should be noted that the fact that some states exceeded the threshold of 50 per cent of their total revenue is not an indication that they over-borrowed as the debt limits of the governments in the federation are yet to be set. “Furthermore, only total revenue is used for the foregoing analysis as comprehensive data on the states’ Internally Generated Revenue were not available. In any case, the IGR on the average is not more than eight per cent of the states’ total revenue except for Lagos State. In essence, the non-inclusion of the IGR may not distort the result of the analysis. “Therefore, there is a need for each of these states to work towards bringing their respective consolidated debts within the 50 per cent threshold of their total revenue in order to guarantee a general public debt sustainability in the country.” http://punchng.com/lagos-osun-crivers-debts-exceed-revenues-by-over-480-frc 1 Share
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| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by EngrMcDon(m): 6:19am On Mar 20, 2018 |
Is that all  1 Like |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by python1: 6:25am On Mar 20, 2018 |
What should be noted is the work done with the loan rather than bleating up and down without bearing. 6 Likes 1 Share |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Omooba77: 6:28am On Mar 20, 2018 |
Yet little or nothing to show for all these debts that ten generations may not finish paying. Most of our rulers dont fear God; reason while Ambode is looking for money anyhow. Where are all the IGR going to? 35 Likes |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Omooba77: 6:31am On Mar 20, 2018 |
python1: Please tell us in Truth percentage of these debts spent on meaningful projects 51 Likes 3 Shares |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by erinolu(m): 6:55am On Mar 20, 2018 |
And crossriver state posted a budget of about 1.3trillion for 2018. (Tagged budget of kinetic crystallization) The huge and collosal budget to net revenue ratio (>900) clearly shows that Ayade government does not have the capacity to pay back its debt. Na gbese this government want dash the poor state Chaiiiiiii 18 Likes 1 Share |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Omooba77: 7:12am On Mar 20, 2018 |
erinolu: They just plan budget without feasible means of financing; putting the populace under unnecessary burden of taxes and charges. Truncating peoples financial dreams and aspirations. 12 Likes |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by tuniski: 7:13am On Mar 20, 2018 |
Omooba77:Don't mind him jare. The debt cummulation has been none productive! 4 Likes |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Omooba77: 7:33am On Mar 20, 2018 |
tuniski: Funny enough, he may be a youth, selling out the future of us all and our children. 14 Likes |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by three: 9:04am On Mar 20, 2018 |
Lagos is broken!!  This confirms the suspicion that LASG may have been inflating its IGR figures since 2015! Why? 1. The state is more attractive to lenders that way (you'd be surprised how many key projects in the State are funded by the World Bank). 2. LASG can only increase IGR (via taxes etc) if it's generally assumed that the State is financially solid. Who gives more money to a broke heavily mismanaged business? Notice that the basis of increasing Land Use Charge is that "we have been utilising your money well (?) and investing heavily in infrastructure (4 bridges and inner city roads" 22 Likes 1 Share
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| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Omooba77: 9:05am On Mar 20, 2018 |
Lalasticlala please let all of us know how much debt our state is owing |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by CodeTemplar: 9:15am On Mar 20, 2018 |
I eagerly await the day the FG will stop sharing funds based on state size (landmass and population) but give a uniform token to all states. The current system is like that of a family man with his own wife & kids who still has the luxury of a huge pocket money from his own dad. He can afford to be jobless and lazy. The states are lazy and impeding grassroot growth. 10 Likes 1 Share |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by CodeTemplar: 9:20am On Mar 20, 2018 |
python1:The work done with the loans are equally as bad as the debt to revenue ratio. The ratio is even fairer because they used revenue and not profit from IGR. You can mention one performing state in this regard if there is any. 5 Likes |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Omooba77: 9:20am On Mar 20, 2018 |
CodeTemplar: Reason we need to restructure 1 Like |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by CodeTemplar: 9:22am On Mar 20, 2018 |
Omooba77: 1 Like |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Anambra1stSon(m): 9:53am On Mar 20, 2018 |
Omooba77:From the report  only states whose debt did not exceed the 50 per cent ratio by more than 100 per cent are Anambra, Borno, Jigawa, Kebbi, Sokoto, Yobe and the Federal Capital Territory. And some idi.o.ts will be comparing their useless leaders and states with Anambra, Anambra is most sustainable and with responsible leaders in south region, this is a state with lowest debt and during recession didn't ask for bailout, some states that claimed to be generating highest IGR asked for bailout twice to be able to pay workers salaries we grew our GDP by one trillion naira in the middle of recession and increased our Internally generated revenue while most taxes remain suspended in other to encourage our people, Anambra state governor pay all workers and pensioners before 25th of every month, increased workers’ salaries in the midst of recession,successfully completed 55 roads with a cumulative length of 422.050KM, Obiano completed three flyovers also awarded 12 new bridges and completed 5 of them without borrowing, also performed well in other sectors, still maintaining lowest debt profile among states in Nigeria. For me Obiano is best governor in Nigeria.43 Likes 3 Shares |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Omooba77: 10:17am On Mar 20, 2018 |
post=65992645:It is not about tribe sir; we are a nation 11 Likes |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Diiet: 10:40am On Mar 20, 2018 |
devindevin2000: some SW states are indebted because of parasites who are living and working in our region. Most igbos in SW are enjoying infrastructure and various govt programmes but they are not paying tax. Because of this, more money will be needed to sustain the states/ the region. Another reason SW states are indebted is because FG is owing them. The money FG is owing OGUN state alone is enough to cover/ pay back the debt s of all SW states. Gloat all you like concerning this useless article, that will not stop you from abandoning your backward region for yorubaland tommorow because SW is the fastest developing region in Nigeria. 12 Likes 3 Shares |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Anambra1stSon(m): 10:41am On Mar 20, 2018 |
Omooba77:I can't remember mentioning tribe in what I wrote, or are you having guilty conscious because states in your region fully represented 14 Likes
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| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by devindevin2000: 10:42am On Mar 20, 2018 |
1 Like |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by devindevin2000: 10:42am On Mar 20, 2018 |
1 Like |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by devindevin2000: 10:42am On Mar 20, 2018 |
Diiet: Afonja, blaming those paying taxes that is preventing them from going bankrupt 45 Likes 5 Shares |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Ngokafor(f): 10:45am On Mar 20, 2018 |
Only God knows what a State like Osun is doing with all the money she borrowed..inspite of the useless IGR she purpotedly generates,which is touted by on-line urchins to be bigger than the entire SE put together  20 Likes |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Anambra1stSon(m): 10:45am On Mar 20, 2018 |
Diiet: Southwest most backward region in south except Lagos 23 Likes |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by ocelot2006(m): 10:52am On Mar 20, 2018 |
That means those states are broke. |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Diiet: 10:58am On Mar 20, 2018 |
devindevin2000: we deported hundreds of igbo destitutes in lagos before, we are going to do it again. You fake igbo from Abakaliki should go back to your unproductive region pls. 5 Likes |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by Diiet: 11:01am On Mar 20, 2018 |
post=65994033:I can swear with anything that you are living in SW with all your family members. 4 Likes |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by nairavsdollars(f): 11:09am On Mar 20, 2018 |
Lagos in debt with all the huge revenue 1 Like |
| Re: Lagos, Osun, Cross River’s Debts Exceed Revenues By Over 480% - FRC by LasGidiOwner: 11:10am On Mar 20, 2018 |
 This is a hate post. Mod please remove the thread. 13 Likes
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