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Nairaland Forum / Nairaland / General / Politics / Debts Exceeded Revenues In Lagos, Cross River, FCT, Others – FRC (14329 Views)
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Re: Debts Exceeded Revenues In Lagos, Cross River, FCT, Others – FRC by Izongdave(m): 4:05am On Apr 07, 2021 |
This cross river self, when last did she make it to the FP for goods reasons? Second poorest in poverty capital of the world Third for unemployment And I heard their Governor and deputy are professors 1 Like |
Re: Debts Exceeded Revenues In Lagos, Cross River, FCT, Others – FRC by nitrogen(m): 5:13am On Apr 07, 2021 |
TheRealestGuy: If there is suffice debt capacity, lenders will continue to provide loans to states that have capacity. There is a reason why other metrics like debt to gdp, and revenue to debt service exist. Does not make sense to use debt to revenues abeg. What about a company with 100m annual revenue with 500m debt in its capital structure? I guess the company will remain perpetually poor or fold up even though cash flows available for debt service is over 1.5x? Nawa for you o. |
Re: Debts Exceeded Revenues In Lagos, Cross River, FCT, Others – FRC by nitrogen(m): 5:16am On Apr 07, 2021 |
TheRealestGuy: It’s not about US comparison, it’s about debt capacity. Lagos state has the capacity to take on more debt, of course, we should care about judicious spending and not capacity issues. Any state or country and company without debt in its books means there is lots of idle cash, or lenders do not consider such a state/country/company financially viable. |
Re: Debts Exceeded Revenues In Lagos, Cross River, FCT, Others – FRC by TheRealestGuy(m): 5:21am On Apr 07, 2021 |
nitrogen: Capital structure can mean anything, including equity. In any case, if there is any major operational/admin failure and the revenue drastically reduces, or is constantly siphoned away, what happens? You are surely not comparing a company to a state. Are you? By the way, this is how some countries kept being reckless until they actually defaulted. You think it's impossible? Na real waa for Naija economists. |
Re: Debts Exceeded Revenues In Lagos, Cross River, FCT, Others – FRC by nitrogen(m): 3:38pm On Apr 07, 2021 |
TheRealestGuy:Stop running around like a bush god. Countries default when there are macroeconomic issues, e.g. fall in crude oil prices, pandemics etc. Lagos state is not reliant on Crude oil, IGR is good and they can continue to service their debts. As long as the loans go to infrastructure development and other sections of the economy that will yield additional revenue in the future, then no issues. If you borrow 1 billion to get 80-100m annual revenue or cashflow for 40-50 years, then the borrowing makes sense. But your lot believe that 10x total loan to annual revenue does not make sense. Bros, if you don’t understand how it works, ask questions. |
Re: Debts Exceeded Revenues In Lagos, Cross River, FCT, Others – FRC by TheRealestGuy(m): 3:47pm On Apr 07, 2021 |
nitrogen: Get me well, I am not against loans. Especially loans that are ploughed into projects that will yield returns. And you're the one refusing to face reality Mr man. Are you saying same macroeconomic issues cannot affect a state's IGR? Are you seriously supporting continuous pile up of loans up to 1000% Debt to revenue ratio and see nothing wrong with it? Especially seeing that most of the loans are not in Naira, which means that fluctuations in FX rates significantly affect the total amounts and IGR is in Naira, as well as the fact that politicians cannot be trusted to actually use these loans effectively? You must be joking. |
Re: Debts Exceeded Revenues In Lagos, Cross River, FCT, Others – FRC by Pumpumking: 7:09am On Aug 14, 2021 |
tot: hello daling. yor name remind me off one nigeria word call toto. well i love toto, toto is a thing men play wit durrrin chrismas sir anyways, please can u describe yor sef from waist down. U look famlair, was yor nomba please? |
Re: Debts Exceeded Revenues In Lagos, Cross River, FCT, Others – FRC by Aganju849: 8:21am On Aug 14, 2021 |
padi94: The bigger problem with this regime is, even when they borrow for capital projects they end up stealing more than half the borrowed funds. Now they wish they can reduce civil servants' salaries and increase taxes to balance their useless budget...taxes are in fact being increased. |
Re: Debts Exceeded Revenues In Lagos, Cross River, FCT, Others – FRC by Nobody: 9:35am On Aug 14, 2021 |
dimugonabo:I was going to ask him this same question before leaving this thread. |
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