This cross river self, when last did she make it to the FP for goods reasons?
Second poorest in poverty capital of the world
Third for unemployment
And I heard their Governor and deputy are professors

TheRealestGuy:


And this is how African countries remain perpetually poor, especially as there is no corresponding productivity that can lead to radical rise in GDP and IGR.

Keep deceiving yourself with US comparism.

If there is suffice debt capacity, lenders will continue to provide loans to states that have capacity. There is a reason why other metrics like debt to gdp, and revenue to debt service exist. Does not make sense to use debt to revenues abeg.

What about a company with 100m annual revenue with 500m debt in its capital structure? I guess the company will remain perpetually poor or fold up even though cash flows available for debt service is over 1.5x?

Nawa for you o.

TheRealestGuy:


And this is how African countries remain perpetually poor, especially as there is no corresponding productivity that can lead to radical rise in GDP and IGR.

Keep deceiving yourself with US comparism.

It’s not about US comparison, it’s about debt capacity. Lagos state has the capacity to take on more debt, of course, we should care about judicious spending and not capacity issues.

Any state or country and company without debt in its books means there is lots of idle cash, or lenders do not consider such a state/country/company financially viable.

nitrogen:


If there is suffice debt capacity, lenders will continue to provide loans to states that have capacity. There is a reason why other metrics like debt to gdp, and revenue to debt service exist. Does not make sense to use debt to revenues abeg.

What about a company with 100m annual revenue with 500m debt in its capital structure? I guess the company will remain perpetually poor or fold up even though cash flows available for debt service is over 1.5x?

Nawa for you o.

Capital structure can mean anything, including equity. In any case, if there is any major operational/admin failure and the revenue drastically reduces, or is constantly siphoned away, what happens?

You are surely not comparing a company to a state. Are you?

By the way, this is how some countries kept being reckless until they actually defaulted.

You think it's impossible?

Na real waa for Naija economists.

TheRealestGuy:


Capital structure can mean anything, including equity. In any case, if there is any major operational/admin failure and the revenue drastically reduces, or is constantly siphoned away, what happens?

You are surely not comparing a company to a state. Are you?

By the way, this is how some countries kept being reckless until they actually defaulted.

You think it's impossible?

Na real waa for Naija economists.

Stop running around like a bush god.

Countries default when there are macroeconomic issues, e.g. fall in crude oil prices, pandemics etc. Lagos state is not reliant on Crude oil, IGR is good and they can continue to service their debts.

As long as the loans go to infrastructure development and other sections of the economy that will yield additional revenue in the future, then no issues. If you borrow 1 billion to get 80-100m annual revenue or cashflow for 40-50 years, then the borrowing makes sense. But your lot believe that 10x total loan to annual revenue does not make sense.

Bros, if you don’t understand how it works, ask questions.

nitrogen:

Stop running around like a bush god.

Countries default when there are macroeconomic issues, e.g. fall in crude oil prices, pandemics etc. Lagos state is not reliant on Crude oil, IGR is good and they can continue to service their debts.

As long as the loans go to infrastructure development and other sections of the economy that will yield additional revenue in the future, then no issues. If you borrow 1 billion to get 80-100m annual revenue or cashflow for 40-50 years, then the borrowing makes sense. But your lot believe that 10x total loan to annual revenue does not make sense.

Bros, if you don’t understand how it works, ask questions.

Get me well, I am not against loans. Especially loans that are ploughed into projects that will yield returns.

And you're the one refusing to face reality Mr man.

Are you saying same macroeconomic issues cannot affect a state's IGR? Are you seriously supporting continuous pile up of loans up to 1000% Debt to revenue ratio and see nothing wrong with it?

Especially seeing that most of the loans are not in Naira, which means that fluctuations in FX rates significantly affect the total amounts and IGR is in Naira, as well as the fact that politicians cannot be trusted to actually use these loans effectively?

You must be joking.

tot:


Until when accountability is enforced, it's unlikely this will change.

hello daling. yor name remind me off one nigeria word call toto. well i love toto, toto is a thing men play wit durrrin chrismas sir
anyways, please can u describe yor sef from waist down. U look famlair, was yor nomba please?

padi94:
We can't just shake off these debts

They use the country's revenue to share among themselves and cronies, and will further go an borrow to run capital projects, pay salaries, offset debts that they are still accumulating.

What a country, even the experts can't tell them off cos they are benefiting from the act

The bigger problem with this regime is, even when they borrow for capital projects they end up stealing more than half the borrowed funds. Now they wish they can reduce civil servants' salaries and increase taxes to balance their useless budget...taxes are in fact being increased.

dimugonabo:


That's why we have an accountant-General in every state.

I was going to ask him this same question before leaving this thread.