I want to agree with Fayose on his opinion about borrowing. Governors shouldn't be allowed to borrow beyond their tenure.
Allowing governors borrow beyond the expiration of their tenure is just another killer blow to our already corruption-defeated system.
Take Osun state and Aregbesola for example, the next governor after him will be naturally starved of funds because the bulk of all future allocations have been expended on funny schemes (free feeding, free money, ópón ìmo and co) in the present through borrowings. Any governor who feel Federal Allocation is guarenteed to be stable can take an insurance policy on such projection so that in event of future failure of the FG to pay them according to the projection their insurance co. can bail them out. A step I am sure no insurer will risk.
In the past One Nigeria has been held together with the urge and appeal of free & easy oil money but today it being held together by debt from reckless (ex-)governors like Fayemi and Aregbesola who have managed to spend in the free money of the future. I pray our usual APC vs PDP warriors understand my arguement here and desist from derailing the discussion on a burning issue.
Standing5

lalasticlala, seun, mynd44 are invited

Imagine a child(states) who demands pocket money and social freedom from his parent(FG) always borrowing into project earnings of his parents. You can't be an independent borrower and a dependent payer of your debt. You either borrow with the FG's blessing and get help from the FG in times of hardship or forget about FG bail out all together. The parasitic states are killing Nigeria.

Fayose has been saying the truth from the beginning.
Unfortunately, the monkeys that occupies the Zoo wants him dead because he is not saying what they want to hear.

How could a governor who has 4 years tenure borrow money that his state could not be able to pay for 30 years?
What's is the sense in this?

Another governor comes in and borrow again and the debts keep smiling up.

There is absolute sense in what he said.
If your tenure is four years, make sure that whatever you borrow will be paid in those four years, otherwise, work with what you have because you can't simply mortgage the future of your indigenous people.

But watch as the monkeys will descend on this post to tell us one useless excuse from the back of their malfunctioning brains.

There is no state or country in this world that does not borrow, including america and china. Borrowing is not the problem, rather ability to manage the borrowed funds for the purpose it was borrowed and to pay back as at when due. And also, it does not matter whether the governor borrows beyond his tenure, cos government is a continuum. So long as the funds are used for developmental projects that will improve lives and yield revenue in the long run. Asking a governor not to borrow means he shld only be entitled to funds that must be paid back in 4yrs. That does not sound realistic.

Fayose should face his job abeg

We need to hear the truth. Fayose said right.

blackpanda:
There is no state or country in this world that does not borrow, including america and china. Borrowing is not the problem, rather ability to manage the borrowed funds for the purpose it was borrowed and to pay back as at when due. And also, it does not matter whether the governor borrows beyond his tenure, cos government is a continuum. So long as the funds are used for developmental projects that will improve lives and yield revenue in the long run. Asking a governor not to borrow means he shld only be entitled to funds that must be paid back in 4yrs. That does not sound realistic.

You captured my thought. It is all about the sincerity of purpose and not borrowing for white elephant projects they have no economic impact nor returns for the people.

Help us ask Fayose how much he has borrowed so far ?

blackpanda:
There is no state or country in this world that does not borrow, including america and china. Borrowing is not the problem, rather ability to manage the borrowed funds for the purpose it was borrowed and to pay back as at when due.

Your arguement is only valid for independent state who fund their own activities/budget and not dependent states who have no control over what pays their bills. The fall in oil price has exposed this simple fact. Today states are in debt because they have virtually no IGR to support themselve and dynamics of oil pricing is well beyond the President or the FG. Stop comparing financially dependent states in Nigeria with independent ones in the US.

Standing5:
Your arguement is only valid for independent state who fund their own activities/budget and not dependent states who have no control over what pays their bills. The fall in oil price has exposed this simple fact. Today states are in debt because they have virtually no IGR to support themselve and dynamics of oil pricing is well beyond the President or the FG. Stop comparing financially dependent states in Nigeria with independent ones in the US.

U see sometimes, if u dont know what to say its best to keep quiet. A school of thought once said "it is better to be quiet and be thought a fool. Than to speak and erase all doubt". Below is US states ranking of indebtedness and almost no growth. But the infrastructure in these cities are second to none. Debt is not the enemy. Its about spending the funds wisely

blackpanda:
And also, it does not matter whether the governor borrows beyond his tenure, cos government is a continuum. So long as the funds are used for developmental projects that will improve lives and yield revenue in the long run. Asking a governor not to borrow means he shld only be entitled to funds that must be paid back in 4yrs. That does not sound realistic.

You are arguing base on the assumption that corruption is totally absent. That's not the case. In Aregbesola's example, how does free feeding scheme and free money schemes of today justify the indebtedness of the unborn generation? Even the capital project u used as excuse don't overshoot the tenure of initiating governors/government by 18 months at most, so why borrow into the next 30years? That's like forcefully executing capital projects on behalf of the next governor and even borrowing future staff salaries & pensions. In aregbes' case as it stands today, the schools he is building today aren't going to impact state's earning until the next 15 year at best.

Standing5:

You are arguing base on the assumption that corruption is totally absent. That's not the case. In Aregbesola's example, how does free feeding scheme and free money schemes of today justify the indebtedness of the unborn generation? Even the capital project u used as excuse don't overshoot the tenure of initiating governors/government by 18 months at most, so why borrow into the next 30years? That's like forcefully executing capital projects on behalf of the next governor and even borrowing future staff salaries & pensions. In aregbes' case as it stands today, the schools he is building today aren't going to impact state's earning until the next 15 year at best.

Honestly its amazing how people reason. Do u know what infrastructure means?? Let me ask u this. Would u rather borrow N10million to just pay salaries and then empty ur treasury jst so that the state is not indebted, or will u borrow a N1billion and spread it over 30yrs then use to build schools, roads, portable water, electricity etc?

What really is the point of having govt if not provision of basic amenities? After paying your workers salary, what next? Will they pass bush to work? Go to the stream to fetch water to drink? Or eat sand for food?? I know u are much smarter than u pretend to be.

blackpanda:



U see sometimes, if u dont know what to say its best to keep quiet. A school of thought once said "it is better to be quiet and be thought a fool. Than to speak and erase all doubt". Below is US states ranking of indebtedness and almost no growth. But the infrastructure in these cities are second to none. Debt is not the enemy. Its about spending the funds wisely

Your insult applies to you bros. A dependent state in US can borrow as it deems because the burden of repayment won't be shifted to the USA's FG. In Nigeria it is another ball game entirely. The earnings of states here is largely dependent on oil prices which none of the states or FG can control. Borrowing is suppose to be proportional to IGR and not projected earning you have no influence over.
What you are saying by brandishing irrelevant facts about USA borrowing is like saying a jobless and income-less family man is free to borrow money to train his children. Even when he has no sure hope of becoming financially independent anytime soon. Think before you type back pls, insult don't win argument they way you are brandishing them here.

Standing5:
You insult applies to you bros. [b]A dependent state in US can borrow as it deems because the burden of repayment won't be shifted to the USA's FG. In Nigeria it is another ball game entirely. [/b]The earnings of states here is largely dependent on oil prices which none of the states or FG can control. Borrowing is suppose to be proportional to IGR and not projected earning you have no influence over.
What you are saying by brandishing irrelevant facts about USA borrowing is like saying a jobless and income-less family is free to borrow money to train his children. Even when he has no sure hope of becoming financially independent anytime soon. Think before you type back pls, insult don't win argument they way you are brandishing them here.

Try and learn, its not about winning argument. Its about fact and reality.
You see what u typed above, is the burden of debt in ogun state or niger state shifted to FG?? Dont make noise abt what u know nothing abt.

Btw it wasnt an insult. Rather its just ur ego that makes u think so.

blackpanda:



Honestly its amazing how people reason. Do u know what infrastructure means?? Let me ask u this. Would u rather borrow N10million to just pay salaries and then empty ur treasury jst so that the state is not indebted, or will u borrow a N1billion and spread it over 30yrs then use to build schools, roads, portable water, electricity etc?

What really is the point of having govt if not provision of basic amenities? After paying your workers salary, what next? Will they pass bush to work? Go to the stream to fetch water to drink? Or eat sand for food?? I know u are much smarter than u pretend to be.

Even your penchant for avoiding questions, raising irrelevant facts and issuing insults is well noted, I will let them slide for maturity sake. If I am to educate you further, even your concept of government borrowing is 100% flawed. Govts borrow in order to have a headstart on developemental project and meet deadlines, and not to avoid an empty treasury.
Going back to you post, it make zero sense borrowing to create infrastructure that can't immediately impact the repayment process of the debt itself. Even if you insist that's the case, it doesn't equate to the wastage we see daily. I mean the inflated project and wasteful spending like free meals and salaries. You need to stop avoiding a solution because of the identity of its provider.

[s]

Standing5:
Even your penchant for avoiding questions, raising irrelevant facts and issuing insults is well noted, I will let them slide for maturity sake. If I am to educate you further, even your concept of government borrowing is 100% flawed. Govts borrow in order to have a headstart on developemental project and meet deadlines, and not to avoid an empty treasury.
Going back to you post, it make zero sense borrowing to create infrastructure that can't immediately impact the repayment process of the debt itself. Even if you insist that's the case, it doesn't equate to the wastage we see daily. I mean the inflated project and wasteful spending like free meals and salaries. You need to stop avoiding a solution because of the identity of its provider.

[/s]

blackpanda:



Try and learn, its not about winning argument. Its about fact and reality.
You see what u typed above, is the burden of debt in ogun state or niger state shifted to FG?? Dont make noise abt what u know nothing abt.

Btw it wasnt an insult. Rather its just ur ego that makes u think so.

You 've been brandishing irrelevant facts and avoiding reality based question all along. I highlighted the questions for you and pointed out your irrelevant facts withou insults.
The state are constantly pressing the FG for bail outs and therefore shift their primary responsibily to the FG's purse. Salaries of today's workers are being halved to pay for projects of yesterdays' government. That's wrong. No governor should speculate that way.

DaBullIT:
Help us ask Fayose how much he has borrowed so far ?

It is not about the person of Fayose but the people in all 36 states here. Don't throw away the baby with the bath water pls.

Standing5:
You 've been brandishing irrelevant facts and avoiding reality based question all along. I highlighted the questions for you and pointed out your irrelevant facts withou insults.
The state are constantly pressing the FG for bail outs and therefore shift their primary responsibily to the FG's purse. Salaries of today's workers are being halved to pay for projects of yesterdays' government. That's wrong. No governor should speculate that way.

Just keep quiet. Plsssssssssss

blackpanda:



Try and learn, its not about winning argument. Its about fact and reality.
You see what u typed above, is the burden of debt in ogun state or niger state shifted to FG?? Dont make noise abt what u know nothing abt.

Btw it wasnt an insult. Rather its just ur ego that makes u think so.

Give up. Standing5 is raping you with points that your grunts will soon turn to ecstasy

BlackSeptember:
Give up. Standing5 is raping you with points that your grunts will soon turn to ecstasy

Ok

blackpanda:


Just keep quiet. Plsssssssssss

clueless

blackpanda:



Just keep quiet. Plsssssssssss

I'm trying soo hard to refrain from calling u olodo.Young man up there is dishing out points to counter u and all u can come up wit is insults instead of superior argument.Please we need mature minds here who can stick to d topic wihtout insults.

Back to the topic, I agree partially with u OP.Partially bcuz states like Lagos can't generate IGR wise all the resources it needs to sustain a rapid growth in their economy.So they will have to borrow to finance them.The problem I will agree with Fayose is bcuz most states borrow for things that won't generate money to pay off the debt, leaving a huge burden on future generation.

Fayose is always contextually correct. Never mind the media reports. Whenever he makes statements please seek out the context in which he made it.

Standing5 stop arguing with brain dead people.....

DaBullIT:
Help us ask Fayose how much he has borrowed so far ?

Unfortunately for you but fortunately for Ekiti lads

He never borrow a dime

BlackSeptember:
Give up. Standing5 is raping you with points that your grunts will soon turn to ecstasy

That guy is obviously an irredeemable one.

oshyno:

I'm trying soo hard to refrain from calling u olodo.Young man up there is dishing out points to counter u and all u can come up wit is insults instead of superior argument.Please we need mature minds here who can stick to d topic wihtout insults.

Back to the topic, I agree partially with u OP. Partially bcuz states like Lagos can't generate IGR wise all the resources it needs to sustain a rapid growth in their economy.So they will have to borrow to finance them. The problem I will agree with Fayose is bcuz most states borrow for things that won't generate money to pay off the debt, leaving a huge burden on future generation.

If I get the bold part correctly, i beleive you are talking about the fact that infrastructural project often require substantial amount of money as mobilization fee to contractors which helps them meet targetted project completion date. This makes sense because the level of funding needed to kickstart often goes beyond what recurrent federal govt allocation can handle, thus the need to take medium term loans to help keep pace with the needs of the masses arises. My point of contention is the fact these project's completion date often don't go beyond 24months after the end of each administration. Why then do we have debts of 30-50 years?
The best approach is to have all states borrow based on their own IGR alone.