koonbey: I try quote some dumb people's posts make i yab dem wella buh ma fone bring error,then I realize say na God no want M̶̲̥̅ε̲̣̣̣̥ to,probably to avoid Ban.
First,all Governments borrow,I saw somebody saying Lagos State does not need to borrow;but the USA needs to abii...I was in Lagos recently and by God,I Ơ̴̴͡.̮Ơ̴̴̴͡​ what Fashola is using the money for;which is all thepoint isn't it,our FG is spending arnd 500bn servicing debts annually,and somebody please show(not tell) M̶̲̥̅ε̲̣̣̣̥ what they used the borrowed funds for...after completing the projects he is borrowing for,I'm very sure Lagos State will comfortably pay off those debts;most of them are Capital Projects that will bring revenue to the State's Coffers.if you're still not convinced;I suggest you take a tour of the states in Nigeria and I'm sure you will see why Fashola deserves the title of the best governor in Nigeria...Ever! I see somebody calling him a charge and bail lawyer who doesn't know economics...no comme...no,I have to Comment;You are a Fool,why then does he have advisors and cabinet members,what does GEJ know about anything before he goes about tripping on his words and speaking nonsense in everywhere?did he read anything remotely similar to Governance?

Before they say I'm an ACN member;I A̷̷̴̐͠♍ NOT,I A̷̷̴̐͠♍ not old enough yet,but as soon as I A̷̷̴̐͠♍;that is the party I A̷̷̴̐͠♍ going to join,for reasons we all know. Thank you

Good point.

Even if he is not an economist, he is a tax expert. A chartered tax accountant and that qualifies him to have financial knowledge to the core.

This is Punch's version which I think is more detailed.



Lagos State Governor Babatunde Fashola says the need to ensure infrastructural renewal and economic development is the reason his administration decided to borrow in order to fund such projects.

Fashola also cleared the air on the uncertainty concerning the criteria for the specified 200cc motorcycle to ply Lagos roads as provided in the state Road Traffic Law.

The governor spoke while on inspection with members of the state Executive Council to government’s projects in the Badagry area of the state on Thursday.

He said his administration was investing huge resources on infrastructure that would determine the quality of not only the present, but also the future generation.

He said the government could not fund the massive projects in the state by the meagre amount it gets from internally-generated revenue, hence the need to seek bulk funds from other sources.

Fashola said, “You know that IGR will only give us about N300bn.

“We get requests from various communities for roads and other infrastructure.

“When we quantified these requests it was about N750bn, but we couldn’t generate such amount, that’s why we scaled down the budget to N495bn over and above what we can reasonably pursue.

“But we have aspirations and are able to take on greater challenges and that, for me, is part of governance, being audacious and being forward thinking.”

The governor faulted those castigating his government for its debt profile, saying that they were ignorant of the facts and intentions of his government.

He described them as ‘uninformed voodoo economists’, saying the initial N50bn bond his administration took had been paid.

“When we took the bond, many said we had mortgaged the state for 50 years, but we have paid that. The other that we took is due for repayment; the amount in the consolidated debt service account is about N62bn as of December 2012. The liability that we have is N50bn and is not due until 2014, by which time the amount in the debt service account will reduce.”

He said the alarm usually triggered by debt profile should not be based on borrowing but by the ability of such government to pay back, saying the state had shown its capacity to pay back funds borrowed.

On specification requirement for okada, Fashola said, “When you have a 200cc motorcycle as your own form of transport, not public transportation, if you have that, you can ride on any road in Lagos, you don’t need any permission and you don’t need any exemption.

“If you are running courier business, once you have a 200cc, you go to the motor registry, you license it, get your plate number, just as you will license any vehicle, that is all you need, at least for Lagos State Government.”

Wonderful

kingingkinging:

Good point.

Even if he is not an economist, he is a tax expert. A chartered tax accountant and that qualifies him to have financial knowledge to the core.

when did he gain his chartered status? Is it before he become a governor or after? I'm sure he bought that with money. Another case which requires investigation.

https://www.nairaland.com/263284/work-begins-10-lane-lagos-badagry-highway#3749488


[size=16pt]MR FASHOLA WHEN ARE YOU GOING TO FINISH THIS WORK- Lately the said road was classified as a federal road, that it has nothing to do with your goverment. But the thread above, whch was a promtional propaganda in favour of your goverment paints a different story So who is in-charge of Lagos-Badagry expressway[/size]?

Is borowing part of oil money, & perhaps,borowin is part of govt if u can pay back b4 ur tenure elapses

Is borowing part of oil money?, & perhaps,borowin is part of govt if u can pay back b4 ur tenure elapses

koonbey: I try quote some dumb people's posts make i yab dem wella buh ma fone bring error,then I realize say na God no want M̶̲̥̅ε̲̣̣̣̥ to,probably to avoid Ban.
First,all Governments borrow,I saw somebody saying Lagos State does not need to borrow;but the USA needs to abii...I was in Lagos recently and by God,I Ơ̴̴͡.̮Ơ̴̴̴͡​ what Fashola is using the money for;which is all thepoint isn't it,our FG is spending arnd 500bn servicing debts annually,and somebody please show(not tell) M̶̲̥̅ε̲̣̣̣̥ what they used the borrowed funds for...after completing the projects he is borrowing for,I'm very sure Lagos State will comfortably pay off those debts;most of them are Capital Projects that will bring revenue to the State's Coffers.if you're still not convinced;I suggest you take a tour of the states in Nigeria and I'm sure you will see why Fashola deserves the title of the best governor in Nigeria...Ever! I see somebody calling him a charge and bail lawyer who doesn't know economics...no comme...no,I have to Comment;You are a Fool,why then does he have advisors and cabinet members,what does GEJ know about anything before he goes about tripping on his words and speaking nonsense in everywhere?did he read anything remotely similar to Governance?

Before they say I'm an ACN member;I A̷̷̴̐͠♍ NOT,I A̷̷̴̐͠♍ not old enough yet,but as soon as I A̷̷̴̐͠♍;that is the party I A̷̷̴̐͠♍ going to join,for reasons we all know. Thank you

Lol...Koombey is on KoolAid, but the good type. he he

fury: Why criticize fashola when you can see what he is using the borrowed funds for? Other states govt are borrowing and spending recklessly without any meaningful development in their states. Abeg make una free the man joor...

Stop discussing like you are in a beer parlor! If you will come up with such a comment, do back it with some information or fact now. Ah ah.

Dee60: We are not economic illiterates. Lagos is borrowing anyway. If your contractors deliver jobs and you do not pay them on time, that is a form of borrowing. And there is plenty of that in Nigeria today. It is called domestic borrowing. For those using USA and Britain as examples, the difference is that over there the government cannot keep contractors money endlessly unless there is mutual agreement to re-structure the loans. Here, government borrows from its own people and refuse to pay, and they then come to you to approve their going abroad to borrow. It does not work that way, sir.

Apperently you my friend does not know how economy work and doesn't really understand how to grow an economy like lagos. Your defination of local borrowing is laughable if not ridiculous. When you don't pay contractors, contractors won't be able to pay their employee's (workers) and when employee's arenot getting paid local economy will suffer. Which means they can't afford to spend any part of their discretionary in come for thing that drive local economy like mama puts,
Shopping at the mall or at Balogun Market or even taking their children to Mr Biggs. And in turn those buisnesses I just mentioned will now suffer and in turn lay off employess because they barely break even. So youmy friend needs to go back to school and learn how real economy works in a real society. Local borrowing ko local borrowing ni.

FreeGlobe: Laugh will kill me, what I don't get is why this man thinks he is intelligent when each time he opens his mouth he talks like a dumb fuk.
This was the same man that said they could do without oil money right?

lol at his defense for gagging his officials in a Democratic government

Your point is not quite understanding enough. Pls could u pls buttress what u mean by " Do without oil money" in what he has said.

I wonder how some pple think at time....

Which govt doesnt borrow or even on the small scale which successful business man doesnt borrow

What matters is what you use the borrowed funds for and the terms of repayment

Lol, nigerians are too funny..

Economies borrow all the time.. The United States debt is over $1 trillion and they still have money to fight wars and give to charity. What you should consider is the cost of borrowing, pay back period and where the money is going to as well as the return on the investment? Lagos is the fastest growing economy and is also the most populated state in africa and cannot depend on federal allocations to complete its capital projects. Its revenue from taxes will also not cover the cost of capital projects. Lagosians want development but yet they complain about paying taxes, they complain about projects not being done but when you borrow money to complete such projects, they complain. Where is the money supposed to come from?

It is ok to borrow money especially for things like infrastructural and capital expenditures if the interest rates are not unreasonable. Economies also borrow money at reasonable rates so as to maintain their cash flow to run other expenses like paying their workers and such. Depending on the interest rates, the cost of borrowing money might also be non-existent. If i borrow money and my interest rate from you is 3%, i turn around and invest in a project that generates 6% of the money you gave me back, the cost of borrowing is wiped out and i am making 3% without touching my capital.

Think about it, if we borrowed money as a country at a really low interest rate, we would have enough money to finance the build of multiple refineries and the interest rate would be wiped out by the money we saved from not shipping oil abroad and buying refined crude back. The savings could be redistributed back to the citizens.

Lots of states and even the nigerian government borrows money and they dont have anything to show for it. Lagos at least has things to show for it.

stepone:

Your point is not quite understanding enough. Pls could u pls buttress what u mean by " Do without oil money" in what he has said.

I wonder how some pple think at time....

the point wey him dey try to buttress be say, since gomina fshola don talk say lagos fit survive without oil money and you know say naija only economic developmental propeller wey we get na oil money, im con talk say e no need make fashola take loan again since the resources wey lagos alone been get is enough to develop lagos. E be like pikin wey tell him papa say him fit survival without food and pocket money from him papa, and the same pikin con dey lobbying him neighbour to beg for rice or borrow pocket money all the time. You see say the pikin dey proof smart but he dey foolish, shey oye e or make i borrow you my brain? Koposibu

obi2012: Lol, nigerians are too funny..

Economies borrow all the time.. The United States debt is over $1 trillion and they still have money to fight fars and give to charity. What you should consider is the cost of borrowing, pay back period and where the money is going to as well as the return on the investment? Lagos is the fastest growing economy and is also the most populated state in africa and cannot depend on federal allocations to complete its capital projects. Its revenue from taxes will also not cover the cost of capital projects. Lagosians want development but yet they complain about paying taxes, they complain about projects not being done but when you borrow money to complete such projects, they complain. Where is the money supposed to come from?

It is ok to borrow money especially for things like infrastructural and capital expenditures if the interest rates are not unreasonable. Economies also borrow money at reasonable rates so as to maintain their cash flow to run other expenses like paying their workers and such. Depending on the interest rates, the cost of borrowing money might also be non-existent. If i borrow money and my interest rate from you is 3%, i turn around and invest in a project that generates 6% of the money you gave me back, the cost of borrowing is wiped out and i am making 3% without touching my capital.

Think about it, if we borrowed money as a country at a really low interest rate, we would have enough money to finance the build of multiple refineries and the interest rate would be wiped out by the money we saved from not shipping oil abroad and buying refined crude back. The savings could be redistributed back to the citizens.

Lots of states and even the nigerian government borrows money and they dont have anything to show for it. Lagos at least has things to show for it.

Well said .

obi2012: Lol, nigerians are too funny..

Economies borrow all the time.. The United States debt is over $1 trillion and they still have money to fight wars and give to charity. What you should consider is the cost of borrowing, pay back period and where the money is going to as well as the return on the investment? Lagos is the fastest growing economy and is also the most populated state in africa and cannot depend on federal allocations to complete its capital projects. Its revenue from taxes will also not cover the cost of capital projects. Lagosians want development but yet they complain about paying taxes, they complain about projects not being done but when you borrow money to complete such projects, they complain. Where is the money supposed to come from?

It is ok to borrow money especially for things like infrastructural and capital expenditures if the interest rates are not unreasonable. Economies also borrow money at reasonable rates so as to maintain their cash flow to run other expenses like paying their workers and such. Depending on the interest rates, the cost of borrowing money might also be non-existent. If i borrow money and my interest rate from you is 3%, i turn around and invest in a project that generates 6% of the money you gave me back, the cost of borrowing is wiped out and i am making 3% without touching my capital.

Think about it, if we borrowed money as a country at a really low interest rate, we would have enough money to finance the build of multiple refineries and the interest rate would be wiped out by the money we saved from not shipping oil abroad and buying refined crude back. The savings could be redistributed back to the citizens.

Lots of states and even the nigerian government borrows money and they dont have anything to show for it. Lagos at least has things to show for it.

thats one of those things, you have an idea though, but its not applicable to a state but a country as a whole considering nigeria for example our many lagosian eat from lagos government pulse, minut, ok let say those who work in the ministries and local government, so how will this huge loan add to the value of those who never works in the ministry considering the rate of draconia law made by him that keep common man away from doing their business, please tell me monduro

kennytidistar: Another foolish and dumb governor here again who believe nobody else have knowledge but him, imagine, what about the cost of payment, interest rate, payback period, or did he think lagos is his father's property? He is just been priviledge and stop running public office like is father's house. This guy should give himself some brain i beg, or he want another man to come and meet empty treasury and huge debt? Somebody should pls flog him.

That is why you ate so stagnant like a lake water. The only time you move is when you dry up....

are the roads the common man walk on free? is securing the state free? is a clean environment free? all these things benefit the common man.. also dont you realize that when he invests in infrastructure to better the state, it encourages companies to invest in the state thereby creating jobs for the common man? Most people dont realize what he is doing because he doesnt directly hand cash to you, it doesnt mean it doesnt benefit you...

kennytidistar:

thats one of those things, you have an idea though, but its not applicable to a state but a country as a whole considering nigeria for example our many lagosian eat from lagos government pulse, minut, ok let say those who work in the ministries and local government, so how will this huge loan add to the value of those who never works in the ministry considering the rate of draconia law made by him that keep common man away from doing their business, please tell me monduro

stepone:

That is why you ate so stagnant like a lake water. The only time you move is when you dry up....

YOU ARE POINTLESS

1. I am not too sure where to place your arguement, but I take it on the face value anyways.
2. I beg to disagree with you. The "cost of borrowing" is first on the perogative of the borrower, which is taken care of in the ability to pay back. Provided you've convinced your stakeholders that the cost of funds is subsumed by the value the project will deliver. These are simple things we all should understand, economist or not.
3. You will have to take some preliminary position for us to put the "cost of borrowing" arguement into proper perspective, theirin I ask; (a) Do you agree with the decision to borrow? (b) If you agree, then with your argument on "cost of borrowing, do you have alternate leverage options LSG could have explored, yet ignored? (c) else you think they shouldn't even borrow at all...
4. If you take (b) above, the onus is then on you to show us alternatives
5. I hope some of you guys are financially knowledgeble enough and not just regurgitating PDP's arguments that makes little sense. Truth is borrowing gives you leverage. Provided you've not exceeded your ability to pay back, then you're still safe........now that is what I think Fashola is throwing to you guys as challenge. Prove that Lagos cannot pay back those debt.
6. You see the arguement that Lagos will at this rate be broke......is probably not correct. Lagos increased its IGR by over 700% in 12years and still growing, for starters. Population is increasing and with the agressive approach Lagos is taking, trend looks like PIT alone will double in the next 3-5years, not to talk of other acruable incomes from industry taxes, lands and investments, etc.....

HNosegbe: No sir, I disagree. It's not just about "ability to pay back", it's more importantly about the COST OF BORROWING. You need to convince us that the interest rate on these loans is reasonable.

If you doubt me, ask the Federal Government that is currently spending N500 billion per annum on debt servicing.

Mr. Man, they follow nearly the same model, besides managing government involves managing multiple streams of businesses....it's the same

kennytidistar:

so are you saying managing a state is the same as managing a business? Please governance is much more than dat.

obi2012: are the roads the common man walk on free? is securing the state free? is a clean environment free? all these things benefit the common man.. also dont you realize that when he invests in infrastructure to better the state, it encourages companies to invest in the state thereby creating jobs for the common man? Most people dont realize what he is doing because he doesnt directly hand cash to you, it doesnt mean it doesnt benefit you...

look at the way you just massacre your self, ok, i dont know for how long you have been in lagos. But as for me in terms of development and good governance major buba marwa did exceedingly well not all the propaganda you have from fashola today, i was born in lagos, so you cant tell me anything about lagos i dont know i school in lagos and serve there and i am also working in lagos, that is why i'm supprise when some of you come here and rant nonsense, which business are you talking about? Is it the business that has been in lagos even before fashola was born? If there has not been fed govt home in lagos in the past where will he get s igr we need to be sincere with our selves this time around somebody patch road and you are praising him, is it not his responsibility to do that? He is been paid a salary from my tax, i should even charge to do more without loan.

mapet: Mr. Man, they follow nearly the same model, besides managing government involves managing multiple streams of businesses....it's the same

My friend they are not the same that is why most of you misused power because you assume governing a state is the same as managing a business, what is your line of discipline? No wonder we have bunch of fools ruling us. That is why there are training for public office holder is only a psychologically means of remodelling or repositioning there mind, if you are thinking you can manage a public office like your fathers business change you mind today, is not as simple as you think.

kennytidistar:

look at the way you just massacre your self, ok, i dont know for how long you have been in lagos. But as for me in terms of development and good governance major buba marwa did exceedingly well not all the propaganda you have from fashola today, i was born in lagos, so you cant tell me anything about lagos i dont know i school in lagos and serve there and i am also working in lagos, that is why i'm supprise when some of you come here and rant nonsense, which business are you talking about? Is it the business that has been in lagos even before fashola was born? If there has not been fed govt home in lagos in the past where will he get s igr we need to be sincere with our selves this time around somebody patch road and you are praising him, is it not his responsibility to do that? He is been paid a salary from my tax, i should even charge to do more without loan.

This is insane claim means you don't know Lagos, you don't live in Lagos and you are not a lagosian. I don't even know why people take know nothing s like you seriously especially with such outlandish rubbish..

Eko Ile:

This is insane claim means you don't know Lagos, you don't live in Lagos and you are not a lagosian. I don't even know why people take know nothing s like you seriously especially with such outlandish rubbish..

i have been waiting for you, i mean you EKO ILE to quote me because i know quite well you are an hired agent, ike i said earlier governance should be more about managing a home successfully not a business if you doubt me pick up your appadorai and read or dont you read about governance? Or all you do is to assit to propagate? Sorry for you, the bottom line is that loan is not healthy for any state.

mapet: 1. I am not too sure where to place your arguement, but I take it on the face value anyways.
2. I beg to disagree with you. The "cost of borrowing" is first on the perogative of the borrower, which is taken care of in the ability to pay back. Provided you've convinced your stakeholders that the cost of funds is subsumed by the value the project will deliver. These are simple things we all should understand, economist or not.
3. You will have to take some preliminary position for us to put the "cost of borrowing" arguement into proper perspective, theirin I ask; (a) Do you agree with the decision to borrow? (b) If you agree, then with your argument on "cost of borrowing, do you have alternate leverage options LSG could have explored, yet ignored? (c) else you think they shouldn't even borrow at all...
4. If you take (b) above, the onus is then on you to show us alternatives
5. I hope some of you guys are financially knowledgeble enough and not just regurgitating PDP's arguments that makes little sense. Truth is borrowing gives you leverage. Provided you've not exceeded your ability to pay back, then you're still safe........now that is what I think Fashola is throwing to you guys as challenge. Prove that Lagos cannot pay back those debt.
6. You see the arguement that Lagos will at this rate be broke......is probably not correct. Lagos increased its IGR by over 700% in 12years and still growing, for starters. Population is increasing and with the agressive approach Lagos is taking, trend looks like PIT alone will double in the next 3-5years, not to talk of other acruable incomes from industry taxes, lands and investments, etc.....

Ok. You've made some good points, especially the part in bold. It's safe to say the jury is still out on the LASG's ability to manage and repay the amounts borrowed (There's a lot riding on that). Let's see if they will allow their debts to spiral out of control, like the FG has done.

Mind you, I'm not against borrowing. Debt is a two-edged sword, it can be good or bad. I'm just saying it's not just about ability to repay, there are other factors to consider.

HNosegbe:

Ok. You've made some good points, especially the part in bold. It's safe to say the jury is still out on the LASG's ability to manage and repay the amounts borrowed (There's a lot riding on that). Let's see if they will allow their debts to spiral out of control, like the FG has done.

Mind you, I'm not against borrowing. Debt is a two-edged sword, it can be good or bad. I'm just saying it's not just about ability to repay, there are other factors to consider.

Exactly!

This is what a lot of people are not understanding, I've often stated this, debt is good and bad depending on other factors. Well, let's hope LASG knows what they're doing because with close to $1billion in debt, it's a big hmmm

kennytidistar:

i have been waiting for you, i mean you EKO ILE to quote me because i know quite well you are an hired agent, ike i said earlier governance should be more about managing a home successfully not a business if you doubt me pick up your appadorai and read or dont you read about governance? Or all you do is to assit to propagate? Sorry for you, the bottom line is that loan is not healthy for any state.

We can do this like adults. Any issue about loans, it's usage and terms are public records on the state's website for us all to see. Even with all that, it still doesn't mean people like you wont find issues where it doesn't exist.

The fact is, the state's credit ratings is great, the state is not bankrupt or anywhere close to such so all your noise is pretty much pointless, but I'm not here to debate your issues about loans, I'm more interested in your Marwa claim that I highlighted.

Your Marwa claim against Fashola was bogus and irresponsible simply because there is a huge gape between both men in terms of development and the state of Lagos.


Now, we can do this like adults and I'm rightfully assuming that you are an adult.


So let's do each other a favor by supporting our claims with facts and also by listing side by side each man's accomplishments.


Would you like to go first?

Eko Ile:


We can do this like adults. Any issue about loans, it's usage and terms are public records on the state's website for us all to see. Even with all that, it still doesn't mean people like you wont find issues where it doesn't exist.

The fact is, the state's credit ratings is great, the state is not bankrupt or anywhere close to such so all your noise is pretty much pointless, but I'm not here to debate your issues about loans, I'm more interested in your Marwa claim that I highlighted.

Your Marwa claim against Fashola was bogus and irresponsible simply because there is a huge gape between both men in terms of development and the state of Lagos.


Now, we can do this like adults and I'm rightfully assuming that you are an adult.


So let's do each other a favor by supporting our claims with facts and also by listing side by side each man's accomplishments.


Would you like to go first?

You get time sha, Marwa that chopped enough money in Lagos and only used soldiers to deal with touts is being compared to Fashola, I believe Fashola is not working at optimum and that a lot could be done better but to compare him to that guy is an insult, hopefully we get a governor who will even out perform Fashola, as long as a state or a country gets a better administration,, the entity will move forward.

Borrowing money to build infrastructure is a good thing because of the multiplier effect it creates. More infrastructures = more money made by businesses and more people that will be employed = more money for government because of taxation.

Borrowing to pay for recurrent expenditure is bad. Period.

Borrowing is only a problem if you use the funds to pay for recurrent expenses. If you use the borrowed funds for income generating investments then it is a GOOD thing.

I borrow $100 from you and buy $100 dollars worth of garri. *Stupid*
I borrow $100 from you and build a power plant that will make $130 in taxes and fees. *Smart*

Whether borrowing is good or bad, depends on what the money is spent on.

Fashola is clueless if he can't use the IGR with the federal Govt subvention to build infrastructure.You can imajine the IGR generated from Ikeja,Apapa and Lagos Island compare with the level of Infrastructures in those areas.Every body who lives in Lagos see how Lagos state politicians play with those revenue generated.If huge percent of IGR generated in Lagos does not find its way to the pocket of Tinubu and his cronies,Lagos does not need to borrow.Fashola 100 Laptop Dogs who have sold their lives for a pot of porige litter nairaland with senceless defence comment but deep in us lies the truth.