adenigga:
.

https://m.punchng.com/Debts-exceeded-revenues-in-Lagos-Cross-River-FCT-others-FRC

Report seems suspect as it suggests Lagos revenue is less than N200bln. Perhaps the report is not counting federal allocation and only looking at IGR. If so, what is this is an apple pears comparison, as the states were only able to incur these debts due to total revenue profile, regardless of if its IGR or allocation.

Boye33:
Lagos debt status is quite understandable, at the end, the investments in the eko Atlantic city, lekki free trade zone and Dangote refinery would spike up revenue in the state.
.

What I don't understand is what Osun state is looking for in number two.
That state should have declared bankruptcy by now, with the way things are going, their debts would go higher than Lagos with no feasible plan of repaying and not much economic activity going on.
.

I can't remember when I even read a news piece from the state. It appears the current governor Oyetola who was thought to bring succor due to his economic background is just sitting around, borrowing money and paying salaries.

Was the debt Lagos owed used.to finance Dangote refinery and building Eko Atlantic... These are private companies my brothsr. These money our politicians borrows are looted in ovsr priced projects and budget padding.

Housing:
The article is full of half information, Lagos IGR in three months is greater than it's annual Federal allocation, which was used to calculate the revenue and debit ratio. The answer from the article is not factual, real nor justify realty on ground. Lagos State pays salaries and pensions regularly, able to meet all it's financial obligations as and when due.
A States that generate an average IGR of N38Billion per month.

Yeah, indeed the report seems very incomplete and inaccurate.

Boye33:
Lagos debt status is quite understandable, at the end, the investments in the eko Atlantic city, lekki free trade zone and Dangote refinery would spike up revenue in the state.
.

What I don't understand is what Osun state is looking for in number two.
That state should have declared bankruptcy by now, with the way things are going, their debts would go higher than Lagos with no feasible plan of repaying and not much economic activity going on.
.

I can't remember when I even read a news piece from the state. It appears the current governor Oyetola who was thought to bring succor due to his economic background is just sitting around, borrowing money and paying salaries.

Dangote refinery and Eko Atlantic are private projects. Lagos state government has never gone on record to say that have invested in these projects as Lagos State.

Awon oloriburuku. Wasters gang. Yet they still want to go federal to dry national treasury.

The Lagos of Tinubu

nitrogen:
USA has debt to revenue of 700 percent, same with other developed countries.

The right metric is debt service to revenue. If you can service your debt close to two times in one year especially in a low interest rate environment, no qualms at all.

Of course, judicious use of debt is encouraged.

How can you service your debt if it is greater than your revenue?

The only those countries such as US arw able to survive this far is becauae they create more debt to seevice the previous debt. It is basically the largets pyramid scheme in the whole universe and one day it ia bound to collapse.

Do they care. During election time FRC will not say the amount these state governments wasted during elections

adenigga:
.

https://m.punchng.com/Debts-exceeded-revenues-in-Lagos-Cross-River-FCT-others-FRC
Given the difficulty in determining the Internally Generated Revenues of the states and negligibility of the IGRs for most of the states (except Lagos), the FRC uses revenues collected by the states from the federation account for its calculations.

Somebody said the article is full of half information. No, the information is actually enough and adequate for those that have a bit of economics background or knows how to read and understand English Language.

Based on the bolded above you will see that many of the people shouting Lagos is this and that are either economics illiterates or lack basic understanding of English language. Do you know what the IGR of lagos state is? (well over 40billion monthly as at last year and this year the target is 60billion monthly), know how much that is in a year?

If that were to be used as the base instead of federal govt monthly allocation (because many states have close to zero IGR according to the author), Lagos wont be where you are seeing it there, rather its many of these so called oil rich states you will see that are over borrowing despite nothing to show for it.

That said, somebody should tell me what Osun state is doing there or is that state not to have been shared among other states? or sold to the highest bidder? Zero revenue, insignificant federal allocation, yet kept borrowing, na wa o. Ogun state is still okay, because it's tapping from the development in Lagos and its IGR is also climbing steadily over the years.

The article is defective and inconclusive. Any data generated by the figures utilized in this report cannot produce a good judgement of things.
Lagos generated over 600bn IGR in previous fiscal year, and the debt profile is over 800bn. Add 600bn to 117bn federal allocation, that's 717bn revenue for Lagos.
If this is corrected for, Lagos has a revenue debt ratio of 25.3 percent

COMPAQ:


Yeah, indeed the report seems very incomplete and inaccurate.

It is complete and accurate actually because the author already stated the parameters used and he/she clearly states that IGR was not used because there wont be any means of comparison as a result of almost all the other states having too low IGR that can be used as the base in this instance. You can imagine trying to use the IGR of states like Osun, Zamfara or Ebonyi for this.

Don't mind the comment of some people about Lagos, they are either trying to be mischievous or just plain illiterates.

Lack of organization and management is evident in any state or lga in Nigeria.



We dey mess up, well, on all levels.

soojar:


Somebody said the article is full of half information. No, the information is actually enough and adequate for those that have a bit of economics background or knows how to read and understand English Language.

Based on the bolded above you will see that many of the people shouting Lagos is this and that are either economics illiterates or lack basic understanding of English language. Do you know what the IGR of lagos state is? (well over 40billion monthly as at last year and this year the target is 60billion monthly), know how much that is in a year?

If that were to be used as the base instead of federal govt monthly allocation (because many states have close to zero IGR according to the author), Lagos wont be where you are seeing it there, rather its many of these so called oil rich states you will see that are over borrowing despite nothing to show for it.

That said, somebody should tell me what Osun state is doing there or is that state not to have been shared among other states? or sold to the highest bidder? Zero revenue, insignificant federal allocation, yet kept borrowing, na wa o. Ogun state is still okay, because it's tapping from the development in Lagos and its IGR is also climbing steadily over the years.

Begs the question how economically viable is Odudwa nation? When you ask, they tell you “when we get there we’ll think about it”. Except for Lagos & Ogun, other states in SW will go bankrupt without federal allocation. They tell you they have things to bring in revenue. Like what? Oh we have Cocoa, tourism, gold, bitumen. So how come they’re not bringing in revenue today?

tejpot:
The article is defective and inconclusive. Any data generated by the figures utilized in this report cannot produce a good judgement of things.
Lagos generated over 600bn IGR in previous fiscal year, and the debt profile is over 800bn. Add 600bn to 117bn federal allocation, that's 717bn revenue for Lagos.
If this is corrected for, Lagos has a revenue debt ratio of 25.3 percent

Nothing is wrong with the report because the author already stated the parameters used and he/she clearly states that IGR was not used because there wont be any means of comparison as a result of almost all the other states having too low IGR that can be used as the base in this instance.

You just used your own parameter of IGR now and you came up with 25.3%, your report too is accurate based on your stated parameters, it is when some people misinterprets it just like some illiterates did with the original report that is making them make some unsavoury remarks about Lagos that is when there is a problem.

So, it's not the report or the author you need to call out rather it's the illiterate commentators you need to educate

Boye33:
Lagos debt status is quite understandable, at the end, the investments in the eko Atlantic city, lekki free trade zone and Dangote refinery would spike up revenue in the state.
.

What I don't understand is what Osun state is looking for in number two.
That state should have declared bankruptcy by now, with the way things are going, their debts would go higher than Lagos with no feasible plan of repaying and not much economic activity going on.
.

I can't remember when I even read a news piece from the state. It appears the current governor Oyetola who was thought to bring succor due to his economic background is just sitting around, borrowing money and paying salaries.

Osun state government has been blacklisted since the last administration. The debt can't go higher and there's no way for the incumbent governor to borrow additional money.

Patrioticman007:
We need more debts for capital projects, Google the debt profile of USA & see wonders.
All that matters is that those debts are used judiciously for infrastructural development of the state. Debts & state growths are 5 & 6.

you need to learn how to compare apple to apple not apple to orange.. what is the revenue of those countries you mentioned relative to their debt and servicing level...their revenue need to be below their debt with regards to the debt servicing before you can compare them to lagos..learn bros learn...

Can you imagine this kind of amount, and someone will just own all these loan apps ordinary 5k and they will be treating you with public disgrace

occam:


Begs the question how economically viable is Odudwa nation? When you ask, they tell you “when we get there we’ll think about it”. Except for Lagos & Ogun, other states in SW will go bankrupt without federal allocation. They tell you they have things to bring in revenue. Like what? Oh we have Cocoa, tourism, gold, bitumen. So how come they’re not bringing in revenue today?

Well, going by that I will say except the oil rich south south, no other region is economically viable except they now start looking inwards if the free oil is not there again.

In actual sense, southwest is not doing badly if 2 out of 6 states are strong economically, they can take off from there. As for Osun state? They should just sell that state to Lagos or Rivers, very simple.

I don't want to go to the northern states, we know why and how those states were created, I'm only talking of what concerns me down south here

Imagine Cross River State having more debts than Akwa Ibom and rivers ...
Ayade awon thief ..
But Rivers State why borrow too much than Akwa Ibom , when Akwa Ibom is richer than you..

What do you expect from a state where a single man brought in 2billion vans on a day before election, yet some fools saw nothing wrong with that.

Ilaumoh:
Imagine Cross River State having more debts than Akwa Ibom and rivers ...
Ayade awon thief ..
But Rivers State why borrow too much than Akwa Ibom , when Akwa Ibom is richer than you..

when I tell people that Akwa Ibom is far richer than Rivers State the argue nonsense base on past glory ..
look carefully Rivers State total debts sum is 259b, their net revenue generation is 158b in excess of 141.8% while Akwa Ibom total debts is 252b , net revenue generated is 171b in excess of just 90%..
with this alone Akwa Ibom can borrow more if they want and Akwa ibom is richer than rivers State ..

Patrioticman007:
We need more debts for capital projects, Google the debt profile of USA & see wonders.
All that matters is that those debts are used judiciously for infrastructural development of the state. Debts & state growths are 5 & 6.

Justifying shame. What is the standard of living with these countries and the above states mentioned. Poverty lovers

Patrioticman007:
We need more debts for capital projects, Google the debt profile of USA & see wonders.
All that matters is that those debts are used judiciously for infrastructural development of the state. Debts & state growths are 5 & 6.

This is a lie.

In developed countries with debt, their debt does not exceed revenue.

And it can be serviced easily.

And that is besides the fact that those debts are tied to projects and can repay itself.

This is the kind of rubbish economics that tinubu have been selling to you people.

Debt is higher than revenues,and this clown thinks it's a good thing.

Olodo.

3 south West states with debts higher than revenues.

And the common factor is tinubu.

This is the same kleptomaniac that wants to become our president.

If you think atiku is a criminal, wait till tinubu gets there.

NkanAkpanika:

when I tell people that Akwa Ibom is far richer than Rivers State the argue nonsense base on past glory ..
look carefully Rivers State total debts sum is 259b, their net revenue generation is 158b in excess of 141.8% while Akwa Ibom total debts is 252b , net revenue generated is 171b in excess of just 90%..
with this alone Akwa Ibom can borrow more if they want and Akwa ibom is richer than rivers State ..

Yeah from what am seeing , Akwa Ibom generate more Net revenue than Rivers State and have more borrowing ability than rivers ..
But we shouldn't be carried away, no borrowing again oo.

You wonder why that British contraption is called a ZOO. It's not fit for human habitation but animals.

EazyMoh:

How can you service your debt if it is greater than your revenue?

The only those countries such as US arw able to survive this far is becauae they create more debt to seevice the previous debt. It is basically the largets pyramid scheme in the whole universe and one day it ia bound to collapse.

Do you know what you are saying? Debt outstanding is different from debe service amounts. Go check. Can owe 1 trillion, and have interest and principal repayments of 100b. If your revenue is 200b, then you should be fine because DSCR using revenue is 2x.

soojar:



Nothing is wrong with the report because the author already stated the parameters used and he/she clearly states that IGR was not used because there wont be any means of comparison as a result of almost all the other states having too low IGR that can be used as the base in this instance.

You just used your own parameter of IGR now and you came up with 25.3%, your report too is accurate based on your stated parameters, it is when some people misinterprets it just like some illiterates did with the original report that is making them make some unsavoury remarks about Lagos that is when there is a problem.

So, it's not the report or the author you need to call out rather it's the illiterate commentators you need to educate

Because of the confusion that is being created, it would have been good for the report to include IGR even if insignificant for some states. The data is available and could have been used. A column each for allocation, IGR, total revenue and total debt would have painted the full picture. It will enable us see in addition to ratios, what strides are being made by each state to generate internal revenue and allow cross learning.

stayclearofme:

The two of you should get out of this thread. Let economist and reasonable people comment.

Boye33:
Lagos debt status is quite understandable, at the end, the investments in the eko Atlantic city, lekki free trade zone and Dangote refinery would spike up revenue in the state.
.

What I don't understand is what Osun state is looking for in number two.
That state should have declared bankruptcy by now, with the way things are going, their debts would go higher than Lagos with no feasible plan of repaying and not much economic activity going on.
.

I can't remember when I even read a news piece from the state. It appears the current governor Oyetola who was thought to bring succor due to his economic background is just sitting around, borrowing money and paying salaries.

Dream on,dreamer.
The hands that enter the soup pot will only multiply when there is more soup to scoop.
The more the state makes,the more they will take.

nitrogen:
USA has debt to revenue of 700 percent, same with other developed countries.

The right metric is debt service to revenue. If you can service your debt close to two times in one year especially in a low interest rate environment, no qualms at all.

Of course, judicious use of debt is encouraged.

First of, you are comparing a whole country to a state? Really?

Secondly, do you honestly understand why the US can have such high debts and are not bothered? To answer this, look at the country's GDP, look at the world's currency reserves and what currency dominates in that regard.

There is no argument in favour of any of those states accruing such humongous debts. There's a reason the DMO recommends not exceeding 50%.

So, try again, cos there's serious qualms.

nitrogen:


Do you know what you are saying? Debt outstanding is different from debe service amounts. Go check. Can owe 1 trillion, and have interest and principal repayments of 100b. If your revenue is 200b, then you should be fine because DSCR using revenue is 2x.

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.