By Gboyega Akinsanmi

Lagos State Governor, Mr. Babatunde Fashola, Tuesday denied reports that the state government obtained a $15 million credit facility from a United States (US) financial institution, Export-Import(Ex-IM) Bank.

Fashola denied the claims while inspecting some ongoing projects in Ikorodu area of the state.

The projects include the Mile 12-Ikorodu road expansion, Ipakodo Jetty, housing schemes in Agbowa and projects at the Lagos State Polytechnic (LASPOTEC), among others.

He said Ex-IM merely assisted the state government in purchasing some 32 fire fighting engines from an American company, noting that the bank did not grant the state government any direct credit facility.

He explained that the state government “did not apply for any loan and we did not take any loan. I think the interesting thing about the news report is that while it focused on the $15 million, it very loudly omitted to say what the purpose was for. No state governor can borrow money without the approval of his state executive council not even from a local bank.

“Now I also know as a sub-national government, we cannot take loan from overseas without sovereign approval. That is why we went to the National Assembly and Federal Executive Council when we wanted to raise money.

“What really happened was that we applied for a supply of 32 fire engines from a company in the US and anybody who is familiar with Ex-IM loans would know that it is a strategy by America to promote exports for its own companies to overseas countries.

“Now fire engines are not what you can walk into any company and purchase easily. The American company that would manufacture them needed some capital to put them together and export to us.

“So what Ex-IM Bank did was to provide the capital to the manufacturer guaranteed by a Nigerian bank, whom we will pay to, so we are only buying a product. We did not take any loan,” he said.

Fashola therefore explained all the state’s external and internal loans the state government had obtained, justifying that the loans were duly obtained to fund strategic development projects for the good of all Lagos residents.

Tags: News, Nigeria, Featured, Fashola, $15m, Export-Import Bank

Maxymilliano: Ok...

Delafruita: this are the kind of responses we need from our leaders.if an issue is getting controversial,they should clarify and put the issue to rest once and for all.

ba7man: I watched this interview on TV and was impressed with his points. I wonder how GEJ would have answered those questions if he were in Fashola's shoes.

heed101: hE woulD say "I don't give a damn"

kingingkinging: This is why I love this man. His intelligence is too glaring to be ignored.

God bless gov Fash.

GARRI (x7):
Nice and lucid response from Mr. Governor..

If it was GEJ, Abati would have rained abuses on Nigerian, the opposition parties etc without explaining what the transaction is all about.

Lagosians have a rare gem, one they'll only appreciate if they've had to cope with the likes of Thief Ibori and The imbecilic Uduaghan..

ba7man: I watched this interview on TV and was impressed with his points. I wonder how GEJ would have answered those questions if he were in Fashola's shoes.

CFCfan: Fashola is one heck of an intelligent governor. In fact, he should run for President in 2015.

His response to the issue makes A LOT of sense.

Eko Ile:


Lagos State Governor, Mr. Babatunde Fashola



http://www.thisdaylive.com/articles/fashola-denies-obtaining-15m-from-export-import-bank/136511/

kutchs: Hypocrisy at its best. No wonder Sanusi called for the banning of cultural organisations like ACF, Ohaneze and Afenifere.

Funny country Nigeria.

seunpinky: Nice reponse by our governor... Buh wait a minute, his he trying 2 tell us dat he bought 32 fire fighting engines for 15million dollars??