Critics of the current administration have at different times accused President Muhammadu Buhari of mortgaging the future of Nigerians...


The Minister of Works and Housing, Babatunde Fashola, has justified the loans obtained by the Federal Government, saying the country needs to borrow for development.


Critics of the current administration have at different times accused President Muhammadu Buhari of mortgaging the future of Nigerians, especially the younger generation.


But speaking at ‘NAN Forum’, the flagship interview programme of the News Agency of Nigeria (NAN), Fashola said the country would not make meaningful progress without taking loans to boost infrastructure.

”It is in our own interest that government does some borrowing and spends it on investment because that sector contributes to the Gross Domestic Products (GDP) and contributes to employment.”


“I do not support irresponsible borrowing so let us be clear; there has to be some sense to this. So long as you are borrowing to invest and you are investing in assets then we can have this debate from morning till night and I don’t think I will come out unsuccessful.

“I agree everybody must keep their eyes open about how money is being borrowed, what it is being used for and whether the debt is sustainable. We just delivered a rail programme through the Ministry of Transportation; that is a 100-year asset that you have got now.

“So some economists say wait until you gather the money, that’s bad economics,” the minister said.

Super countries relied on borrowing

While pointing out that many developed countries created super economies through borrowing, Fashola said the recent loans obtained by the Federal Government would not mortgage the future of Nigerians.


“We came from a background of colonialism where we were told that if you go borrowing you go sorrowing, so, my parents and their generation told us never to borrow.”

“But while we were not borrowing, those who led the rules started borrowing.

“The largest debtors in the world today are from the West. But with borrowing they have created super economies, built massive train terminals, massive airports, schools and hospitals.

“And you know what is happening, we go to use them and they charge us, so who is paying? I have heard people say they are mortgaging the future of people, as we are holding this meeting, one new baby has arrived, if you don’t prepare for him you make that future bleak.


“As at the time we were building Lekki Bridge in Lagos, it was N29 billion, the child that was born then in 2010 is going to be 11 this year.

“If his mother carrying his pregnancy had crossed that bridge at any time, he used that bridge before he was born and we had secured that asset for him before he arrived.

“If we wait until he is about 30 to build that bridge, we can’t build it at N29 billion anymore. So, if he contributes to paying it so be it because he started using it before he even arrived.


“So, those who said don’t borrow have changed their minds, they have set parameters of debt to GDP and within those parameters you play very well.

“And those who say so now, where were they in 2005 or 2006 when government paid out 12 billion dollars in cash to go and buy up tent when the house is flooding, who does that?

“They took 12 billion dollars in cash to go and write off debts that have been classified. The roads were bad then, the rail was not built, airports needed expansion, Lagos-Ibadan (express way) needed to be built.

Borrowing is not a sin

“But since the aftermath of going to write off that debt, we started borrowing again, so this administration did inherit all the debt. There is a sector of our economy called the financial services sector, if all of us put money in a bank and nobody is borrowing, that bank is going to fold up.

“So, if you have anybody in any venture capital, finance house, mortgage bank, it is because government is borrowing that they can pay their salary. So, borrowing is not a sin, it is part of the essence of keeping the economy growing and the armchair economists talking about public expenditure for example who have never run a government must be careful what they feed to the public,’’ Fashola said.
(NAN)


https://dailytrust.com/fashola-why-nigeria-needs-to-continue-borrowing

Imagine all this borrowings with nothing to show for it. Buhari has vowed not to rest until Nigeria is totally grounded and destroyed

okay in one words we av not seen nothing yet...

So all the audio loot recovery nd revenue generated if we spend am on infrastructure the infrastructure go collapse....

Show me the assets that you have built that is generating revenue from all your colossal borrowing !
Failed Govt

After borrowing, who will pay for it? The nest man to sit in Aso rock will now start suffering for it.

The Lekki tolled gate he claimed the state paid off during his tenure, is still in debt according to LCC.

Lalasticlala we are borrowing everywhere. Very soon, nairaland will be donating one naira per word!

Borrower is a slave to lenders....

Always borrowing but nothing to show for it while Nigeria is into chronic debt pillage.It is from railway that monies will be recouped to pay these debts? This is just a wrong economic policy.You cant run your personal company this way Fash the Lekki-Tollplaza camera finder.

Most of the daft dundees especially these so called educated southern stooges on this cursed govt just say all these shit just to sound politically correct before the erankos they are serving under.

All borrowing and no wealth makes nigeria a perpetual debtor

Tetrahedron:
Show me the assets that you have built that is generating revenue from all your colossal borrowing !
Failed Govt

The loans have gone majorly into building roads (sukuk), rail (Chinese), airport expansion, military equipment etc.

The road, bridges, airports and rail projects are visible even to the blind.

Omooba77:
The Lekki tolled gate he claimed the state paid off during his tenure, is still in debt according to LCC.

Lagos state acquired LCC. LCC now belongs to Lagos state. Read up stuff and understand very well before posting ignorant comments all over the place.

seunmsg:


Lagos state acquired LCC. LCC now belongs to Lagos state. Read up stuff and understand very well before posting ignorant comments all over the place.

Go and listen to Mr. Abayomi's interview on Nigeria info on Feb 16, 21. He said their are still local and foreign investors and the company still owes about N11 bn and $31million. The man does not even know how much LCC generates per month. Google is your friend! You believe everyone is shallow minded like you fixated on party and religion affinity.

Omooba77:


Go and listen to Mr. Abayomi's interview on Nigeria info on Feb 16, 21. He said their are still local and foreign investors and the company still owes about N11 bn and $31million. The man does not even know how much LCC generates per month. Google is your friend! You believe everyone is swallow minded like you fixated on party and religion affinity.

Like I said, read up and understand first. LCC is now fully owned by Lagos state government. That Lagos state is the owner of the company won’t erase the liabilities of the company. The company must still generate income to pay off its debt.

Loans were taken to build the road. The loan must still be paid irrespective of changes in ownership structure.

seunmsg:


Like I said, read up and understand first. LCC is now fully owned by Lagos state government. That Lagos state is the owner of the company won’t erase the liabilities of the company. The company must still generate income to pay off its debt.

Loans were taken to build the road. The loan must still be paid irrespective of changes in ownership structure.

You are still defending indefensable. Let LCC submit all their papers, since you claimed to be an auditor.
LCC is still cashing out brother

Hmmm, Wetin una wan take repay the loan

Omooba77:


You are still defending indefensable. Let LCC submit all their papers, since you claimed to be an auditor.
LCC is still cashing out brother

Always jumping from one point of argument to the other. You’ve talked about ownership, debt and now audit. What exactly do you want to talk about? Choose one and argue it out.

LCC is a limited liability company owned by Lagos state. Statutorily, they would have an auditor that audits and report on their accounts. However, limited liability companies are now mandated by law to publish their audited financial statements unlike public liability companies.

seunmsg:


Always jumping from one point of argument to the other. You’ve talked about ownership, debt and now audit. What exactly do you want to talk about? Choose one and argue it out.

LCC is a limited liability company owned by Lagos state. Statutorily, they would have an auditor that audits and report on their accounts. However, limited liability companies are now mandated by law to publish their audited financial statements unlike public liability companies.

Is state not claiming in 2011 it is not owing any investor?

LCC is not owing anybody, but just a source of revenue to state government. If LCC is bold enough, let it make all the agreements and dealings come into public QED!