Governor Babatunde Fashola of Lagos State has said the
decision of the state government to take a N160bn bond
from World Bank was in order.
He added that strategies were in place to ensure that the
loan was paid back as and when due.
Fashola said this on Wednesday during the inspection of
the ongoing construction of the light rail terminus at Orile-
Iganmu, Lagos.
The governor, who said he was satisfied with the work
done so far on the project, added that it should be
completed in another 12 months.
He said, “I think it was the debt management office of the
Federal Government that published the report that we
have a debt of about N160bn. I don’t know the intent of
the publication, but if it was to inform the public, I think we
have always kept the public informed anytime we borrow
money.
“When people talk about debt of a state like Lagos, they
forget that we have the fifth largest economy in Africa.
When you are talking of about a billion naira debt to a
population of over 21 million people, you are measuring
the debt. So, you also have to measure the responsibility.”
Fashola said the government already had in place,
strategies for the repayment of the loan, saying the Federal
Government was in the know of the state’s decision to take
the bond and had approved it.
He said, “No state in Nigeria can borrow money from any
multilateral agency without the approval of the Federal
Government. So, what they did not say is that they
approved it.
“Our rating as a state is the same as that of the Federal
Republic of Nigeria, BB Minus-Stable with a positive
outlook. We are the only state in Nigeria that has that
rating.
“The first bond that was taken during my first tenure has
been paid. The first tranche has also been paid. I think the
second tranche will fall due around 2016 or 2017 and we
have already made provisions.”
Speaking on the rail construction, Fashola said despite the
unexpected delay due to funding, he was confident that
the project would be completed in another 12 months.
Meanwhile, Fashola same Wednesday paid a condolence
visit to the family of late frontline journalist, Mr. Dimbga
Igwe, describing him as a brother and friend.
Dimgba had been killed by a hit-and-run driver on
Saturday. He was 58 years.
Fashola, who was accompanied during the visit to Okota –
the deceased’s home – by some of his aides, was received
by Dimgba’s wife, Obioma, the children and other family
members.
http://www.punchng.com/news/fashola-defends-n160bn-debt-visits-the-igwes/

APC state with heavy gbese, soon the state will be privatised and the poor people will live to surfer the seed of the government. I pity lagocians.