It goes to show the level of corruption in the Nigeria landscape.
If the government cannot verify that this project can be completed by the firm, this is no good enough.
It is now over 3years, now the blame is on Nigerian banks and unforeseen forces - we keep deluding overselves. The Lagos - Ibadan expressway can be completed within 18months if the right company is in place.
When are we ever going to get things done properly in Nigeria.

In some countries with proper procedures and legislation, the managers of this company will have been prosecuted.
So the suffering continues for the masses using the road

so a contract was awarded to people without money or a plan ?

It amaze me sometimes with our government and the so called leaders how they lead this country Call Nigeria. Pls my ppl this is the level the Chinese has reach this days make una take a look while Nigeria govt is still struggling with how many km road.

http://www.chinadaily.com.cn/china/2010-04/28/content_9787628.htm

Nigerian banks are appallingly disgusting! They never ever have the foresight to see an opportunity and grab it by the horns. It's not about Babalakin being a bad debtor, it's about our banks stubbornly refusing to finance any project that will not make them 20-30% returns a year! - Which is an impossible return on long term projects.

Our 4 biggest banks (First Bank, UBA, Zenith, GTB) range in age from at least 20 yrs to over 100 yrs, yet the combined turnover of these 4 banks at N762 billion is almost the same as 10 yrs old MTN Nigeria's at N749 billion!! How blind are these banks? Couldn't any one of them have seen the huge potential waiting to be tapped in the telecoms industry in Nigeria and set up a telecoms company and bid for one of the licenses in 2001? The licenses cost $285m which they could have easily raised, it would then simply be a case of bringing in a competent operator/investor to run the business.

South African banks are taking over most of the major long term financing in Nigeria. Dangote liquidated all his loans with Nigerian banks and moved the entire facility to South African banks at better rates and longer tenors. Believe you me, the South African banks would give Babalakin the money he is looking for, and they would be smiling back to South Africa every year with their repatriated interest income that could have easily stayed within the banking system/economy in Nigeria, but for the mindboggling greed of our banks!

Just like everything else, the Government did not have any plans for that road other than to repair potholes every time.  I believe the idea for expansion and modernisation came from Babalakin himself. I may be wrong though.

Another link to engineering development by the Chinese.
http://www.bbc.co.uk/news/world-asia-pacific-13981547

When are we going to get the simple projects in life done.
We still have a very, very long way to go.

As it is in the public sector, so it is in the private sector, our banks could have asked for guarantees but, they are always quick money schemes, they do not know the meaning of patience, deals that would have paid them in the long run are usually done with selfish interests behind them.

@ Ibime.

It is clear that you have an issue with Pastor Adeboye and his ministry before now, I will suggest you focus on the topic at hand and not use this medium for name calling and starting another religious war on this thread.

Ibime:

Pastor Adeboye is a bastard and a cretin, a charlatan who sells the candidacy of thieves and oligarchs to the Southern Christian proletariat.

What kind of dark-ages mentality would prompt a man of dog to ask for prayers for a road which has already had 3 failed budget allocations and is now being put up to tender to be financed by the private sector by a thief with a long history of fraud, incompetence and debt-default? BTW, the Lagos Government has never had any problem getting the Private sector to finance its infrastructure projects, but nobody trusts the rotten PDP Govt with their money. Why should straightforward engineering projects be shoehorned into the realm of religion whilst the bovine-brained congregation are coerced into believing that "spiritual forces" are behind the incompetence of Government officials as they cart away the nations wealth through the back door? How many prayers were said in the Developed World for them to build their bridges, roads and infrastructure?

Instead of the conniving man of dog to call leaders to account, he habitually serves as an image-launderer for these thieves and murderers. It is no surprise that some of the biggest thieves worship with him and some even take shepherdry of his flock (Akingbola). If a true revolution was carried out today, the man of dog called Adeboye would not escape the hangman's noose.

I wsh you could make this argument without the insults and abuses.
your point is valid but the wording no fit you. you don big pass this kind insults and abuse.
i support your argument.
the simplistic way these men of God deal with corruption in high places is aiding the destruction of the society.
why does darkness feel so comfortable in the company of light?
some of the people who go to these men of God are more comfortable in their presence than in the company of the masses.
I would have expected these men of evil to quake in the presence of men of God and fear for their iniquity.
in some parts of the world,religious leaders maximize their sphere of influence for accountability,ours seem to just bask in the euphoria of the influence they wield.
stop talking to them in the secret,it is making no difference.
scold them in the open.

how many years after the project was awarded,if Dr. Babalakin cannot deliver why not give up?
why did the govt not confirm financial viability before awarding the contract?

readymade:

@ Ibime,

watch what you say, Insulting a man of God to you may seem cool, but you are really heaping trouble upon yourself,

A word is enough for the wise,

, Have a good day.

insulting anybody will bring trouble not just men of God.
after all is said and done they are still men and not God.

VolvoS60:

The inmates are still running the Nigerian asylum.

According to Mr Babalakin "There’s nobody who wants to give out money. This road was given to Nigerian Banks to finance; Nigerian Banks don’t have a long-term contract. We were holding meetings upon meetings, but you discover that all they can give is money for a year or two years and what you need is money for 15 years".

Indeed.

How did Bicourtney win the concession to begin with if the funding aspect had not been sorted out? And if it is clear that it cannot deliver, why has the concession (or concessioning or whatever) not been revoked? And what compensation will be paid to taxpayers for the losses incurred as a result of non-performance?

These are the questions Nigerians should ask and DEMAND answers to. I drive on the Lagos-Ibadan expressway regularly and the waste of human lives on that road is truly heartbreaking. I have seen horrific accidents on that road in which this country's best and brightest (people in their most productive years) have been killed or maimed because of very poor road conditions (although i should add that there are also other reasons for the high rate of casualties. But that's a matter for another day).


Mr Bablakin, BUILD THE DAMN ROAD OR REQUEST FOR THE CONCESSION TO BE TRANSFERRED TO MORE CAPABLE HANDS. We are tired of excuses. While you talk about ''powerful forces" and other nonsense, people are dying on that highway.

I hope Nigerians can see the consequences of their actions (or lack thereof). After several years of PDP-led administrations at the centre, our public infrastructure continues to deteriorate. Yet people continue to wallow in the kind of self-delusion that feeds statements like "i voted for Jonathan & not the PDP".

You get what you pay for.

very apt comment.
thank you very much.

It pains me when I hear how those ZA guys are just having our lunch.

Its even shuddering what someone mentioned earlier "yet the combined turnover of these 4 banks at N762 billion is almost the same as 10 yrs old MTN Nigeria's at N749 billion".
A $5bb company in 10 years? Wow! Imagine all that money leaving our shores for ZA.

Well, we cant exactly blame banks. Their deposit base is largely short-term, and they'd be foolish to mismatch this with infra investments.
For crying out loud, Nigeria's pension now have close to 1Trillion. This is perfect for infrastructure investments.

And to think that those ZA guys have bought UAC too,

massive contract awarded to a bankrupt company! only in Nigeria.

ADint:

Nigerian banks are appallingly disgusting! They never ever have the foresight to see an opportunity and grab it by the horns. It's not about Babalakin being a bad debtor, it's about our banks stubbornly refusing to finance any project that will not make them 20-30% returns a year! - Which is an impossible return on long term projects.

Our 4 biggest banks (First Bank, UBA, Zenith, GTB) range in age from at least 20 yrs to over 100 yrs, yet the combined turnover of these 4 banks at N762 billion is almost the same as 10 yrs old MTN Nigeria's at N749 billion!! How blind are these banks? Couldn't any one of them have seen the huge potential waiting to be tapped in the telecoms industry in Nigeria and set up a telecoms company and bid for one of the licenses in 2001? The licenses cost $285m which they could have easily raised, it would then simply be a case of bringing in a competent operator/investor to run the business.

South African banks are taking over most of the major long term financing in Nigeria. Dangote liquidated all his loans with Nigerian banks and moved the entire facility to South African banks at better rates and longer tenors. Believe you me, the South African banks would give Babalakin the money he is looking for, and they would be smiling back to South Africa every year with their repatriated interest income that could have easily stayed within the banking system/economy in Nigeria, but for the mindboggling greed of our banks!

A very sensitive issue at hand I must say, but clearly kinda interwoven. In as much as I would want to agree with ur position, I still believe ur arguement is a lil bit myopic. I must remind you that this banks themselves do not operate on their own, and cannot afford to on some voyage of no discovery at this moment of financial shake-ups n regulation. You will recall the banking sector is not only in the venture of credit facililties, thus it cannot deplored its entire resources to finance a single project which can solely be handled with goverment's PPP public private partnerhip and other governemtn iniatives related if properly considered with full commitment . This banks at the moment will guard their resources at all cost now in view of the recents shake ups and hurricane sanusi in the financial sector. If Dr. Babalakin decides to seek facility from SA firms to finance it, all good and fine as long as it will get the job done in no time. It is a proactive move on his part, especially at this critical situation in the nations economy. However whether the idea of seeking spiritually intervention on this project is perhaps irrelevant for this discuss. Its his choice to seek God's intervention. Just my take

Surely, the 55 cases pending in Nigerian courts against Babalakin's company must be a factor mitigating against the speedy execution of the project. This brings to fore the importance of timely dispensation of Justice in our Country with regards to providing a conducive business environment.

I really don't know what Nigerians want. The bad, bad, bad Bi-Courtney has still managed to build (no matter its short comings) the best airport terminal in Nigeria (pls feel free to contradict if I'm wrong). Yes it is expensive, yes a few facilities need a repair but it remains the best. One would have thought that all stake holders will have fallen over themselves to replicate these advances in all areas of infrastructural shortcomings. The MTN we speak about was expensive, highly inefficient and highly indebted when it started (as with GLO) but with time, additional investment and scale it has become the most profitable enterprise.

For goodness sake these roads will make money from day one, tons of it, but no one except the enemies of this country can see this opportunity. Believe me if we cannot free our ourselves from this: government will do all/allocation/contracting mentality, the dustbin best describes our economy when oil runs dry. Then we will know what re-colonization is all about.

When JFK famously said 'ask not what your country can do for you but what you can do for your country' he was not speaking politics and socialism alone but of economics and enterprise. The ability of people to rise up and feed themselves. In those days communities gathered together to erect electric poles and purchase transformers. What has happened to us. Suddenly no one wants to pay for anything, to do anything. Government this, government that. as if we don't know who they are - a corrupt, inept lot.

These same banks are falling over one another for government accounts and willing lend billions to senators for their over-bloated salaries, why wouldn't they pay for this mess. They are the ones killing Nigerians, killing industry, killing enterprise. If I had a bank it is better if it went down financing a road, rail line or refinery than have it dissolved by bad debts to political campaigns and senators salaries. At least there is something to take over, something to sell.

It is pointless reminiscing about the gargantuan capital flight to South-Africa via MTN, Multichoice or Bi-Courtney (to come). I will not give myself hypertension over lost jobs or lost cyclical investments. At least the services are there. What really pisses me off is the lost billions to foreign banks through capital flight in contracting with the attendant corruption. That is what we should fight. Our natural resources are our legacy. We should not fritter it away. If we have hands let us work. The more we privatise the more we prevent those evil men and women from destroying our legacy and the lives of our future generations.

Reference:

Well if Bi-Courtney defaults on payments on MM2 why doesn't the banks take it over. That is a silly excuse. Banks have failed period. I am not holding forth for Bi-Courtney but who in his right mind will see a project that could potentially generate millions daily and not move on it. We can clearly see the results of the capitalization - bloated overheads, un-viable branches everywhere and yes more shops in Dubai and London. Let South Africa take over and let the Multichioce story start again. Nigerians amaze me. We criticize government day in day out yet cannot move a finger to finance a two hundred kilometer road. Yet those CEO's live in billion naira mansions in Ikoyi and grumble while driving their multi-million naira automobiles over pot holes they can be making a fortune from.

We can't take reasonable risk. Everything is short term. We cannot trust each other so we expect foreigners to trust us. What is eternally wrong in paying for infrastructure. We die daily, complain bitterly yet are unwilling to pay for safety. When we get to Europe and the US don't we. Government contractors don't want PPP and will do anything to sabotage it just as they have done to our refineries, power stations, railway and now roads simply because they are lazy, wicked and evil. They rather want multi-billion naira contracts out our non-existent and much hyped resources to eternally repair.

Virtually all major roads in Nigeria are eternally under repair costing billions without remedy. That is what we want. I've said it before even in one of the most socialist countries in the world - China, people pay for stuff. What we cannot pay for we do not deserve. Wake up Nigeria is not Saudi Arabia and never will be. It is not in our culture as Africans to wait for people to do stuff for us.

I don't know Bi-Courtney or Babalakin but what he says is absolutely true. Sorry to say so but let us ask Julius Berger and the likes to open their books and let us total what we have paid to them since the seventies to build us roads and bridges and why they cannot by now raise cash from the banks in Stuttgart (where they have been remitting huge amounts of money to) to participate in the PPP. We are just programmed for waste in this country. And here we are insulting our own, just a man, one man, trying to take the bull by the horns against impossible odds. Let him leave it and let's see how the road will improve. I think Lagos state has tried Badagry and has seen how easy it is. Nonsense.

This is utter balderdash. As someone said earlier, isn't the biggest fraud securing the concession without locking down the financing, thereby ensuring the road remains in a state of disrepair while you can point fingers elsewhere? Why should we not criticize the Federal Government for failing to revoke the concession when work has failed to start?

I don't give a rat's arse about 'our own'. I care about the road being fixed, be it by a chinese or sri lankan fellow, I do not care. The people who ply that road will thank whoever fixes the road.

Government is not exempt from abuse over this, the Bi-courtney guy is not exempt and even Pastor Adeboye needs to re-examine his role in matters like this one. Giving credence to conspiracy theories by a known crook is not a wise thing indeed, and certainly not exemplary behaviour.

Quote from: Reference on Today at 11:26:28 AM

Well if Bi-Courtney defaults on payments on MM2 why doesn't the banks take it over. That is a silly excuse. Banks have failed period. I am not holding forth for Bi-Courtney but who in his right mind will see a project that could potentially generate millions daily and not move on it. We can clearly see the results of the capitalization - bloated overheads, un-viable branches everywhere and yes more shops in Dubai and London. Let South Africa take over and let the Multichioce story start again. Nigerians amaze me. We criticize government day in day out yet cannot move a finger to finance a two hundred kilometer road. Yet those CEO's live in billion naira mansions in Ikoyi and grumble while driving their multi-million naira automobiles over pot holes they can be making a fortune from.

We can't take reasonable risk. Everything is short term. We cannot trust each other so we expect foreigners to trust us. What is eternally wrong in paying for infrastructure. We die daily, complain bitterly yet are unwilling to pay for safety. When we get to Europe and the US don't we. Government contractors don't want PPP and will do anything to sabotage it just as they have done to our refineries, power stations, railway and now roads simply because they are lazy, wicked and evil. They rather want multi-billion naira contracts out our non-existent and much hyped resources to eternally repair.

Virtually all major roads in Nigeria are eternally under repair costing billions without remedy. That is what we want. I've said it before even in one of the most socialist countries in the world - China, people pay for stuff. What we cannot pay for we do not deserve. Wake up Nigeria is not Saudi Arabia and never will be. It is not in our culture as Africans to wait for people to do stuff for us.

I don't know Bi-Courtney or Babalakin but what he says is absolutely true. Sorry to say so but let us ask Julius Berger and the likes to open their books and let us total what we have paid to them since the seventies to build us roads and bridges and why they cannot by now raise cash from the banks in Stuttgart (where they have been remitting huge amounts of money to) to participate in the PPP. We are just programmed for waste in this country. And here we are insulting our own, just a man, one man, trying to take the bull by the horns against impossible odds. Let him leave it and let's see how the road will improve. I think Lagos state has tried Badagry and has seen how easy it is. Nonsense.

true word

This is utter balderdash. As someone said earlier, isn't the biggest fraud securing the concession without locking down the financing, thereby ensuring the road remains in a state of disrepair while you can point fingers elsewhere? Why should we not criticize the Federal Government for failing to revoke the concession when work has failed to start?

I don't give a rat's arse about 'our own'. I care about the road being fixed, be it by a chinese or sri lankan fellow, I do not care. The people who ply that road will thank whoever fixes the road.

Government is not exempt from abuse over this, the Bi-courtney guy is not exempt and even Pastor Adeboye needs to re-examine his role in matters like this one. Giving credence to conspiracy theories by a known crook is not a wise thing indeed, and certainly not exemplary behaviour.

also fair comment,

the answer to the bolded sentence: the concession went to the highest bidder, not open bids but bidding under the table, I know this for a fact because i know people who were part of the bidding process. All the potential developers but forward their bids and every, I say every one of the bidders had to pay the Civil Servants and Politicians every step of the process, not just Bi-Courtney. (just Bi-Courtney paid the most), given that background how can the government now revoke the concession? how can Bi-Courtney give up the concession? and obviously the extent of due diligence with bidders is bound to be flawed hence no secure finance in place. (but as Babalakin said lots of promised financing from banks)

The main culprits are the government officials (both politicians and civil servants) and to a lesser extent the banks.

texazzpete:

This is utter balderdash. As someone said earlier, isn't the biggest fraud securing the concession without locking down the financing, thereby ensuring the road remains in a state of disrepair while you can point fingers elsewhere? Why should we not criticize the Federal Government for failing to revoke the concession when work has failed to start?

I don't give a rat's arse about 'our own'. I care about the road being fixed, be it by a chinese or sri lankan fellow, I do not care. The people who ply that road will thank whoever fixes the road.

Government is not exempt from abuse over this, the Bi-courtney guy is not exempt and even Pastor Adeboye needs to re-examine his role in matters like this one. Giving credence to conspiracy theories by a known crook is not a wise thing indeed, and certainly not exemplary behaviour.

Fine, so we go back to contracting. Satisfied.

Wait a minute!

The inmates are still running the Nigerian asylum.

According to Mr Babalakin "There’s nobody who wants to give out money. This road was given to Nigerian Banks to finance; Nigerian Banks don’t have a long-term contract. We were holding meetings upon meetings, but you discover that all they can give is money for a year or two years and what you need is money for 15 years".

@Reference

Well if Bi-Courtney defaults on payments on MM2 why doesn't the banks take it over. That is a silly excuse. Banks have failed period. I am not holding forth for Bi-Courtney but who in his right mind will see a project that could potentially generate millions daily and not move on it.

I think we should inject some "logic" into our arguments.

1.) To bid for a project, you would have done your own due diligence:
a) secured source of funding for the project: Did Bablakin and his Bi-Courtney do this? How come he is running from pillar-to-post now?
b) evaluation of cost and benefits, challenges, a sort of SWOT analysis. Whats the story about witches and wizards now?

2) To actually "win the bid", your bid must be the best, in-terms of ROI to you and the government
a) Was this bid won on bribery of government officials?
b) Did those who awarded the project to Babalakin' Bi-Courtney not know that he has not "secured" the required funding from anywhere?
c) Are they not aware of his reputation as a perpetual bank loan defaulter, hence no bank wants to loan him money?

As regards the MMA terminal mentioned above, the Banks actually tried to "seize" the project so they can complete it and recoup their money back but the management of FAAN was "alleged" to be demanding for a "kick-back" of 60 Million Naira! from the banks, before that can be allowed. (Pls Note: I used the word "alleged" as was stated)

("Reference" in particular should take note. They tried and you're wrong for saying they did not. )

The issue raised about Julius Berger begs attention
In as much as l will like our resources to remain within our shores and our local companies encouraged, anyone with a fair perspective on things would agree that "You can easily identify any road, done by Julius Berger"! The standard is there for all to see. J.Berger did not go to Prayer city to seek "prayers against some spiritual demons" before completing their job, they did not complain about Nigerian banks; THEY JUST DID THE JOB THEY WON. Simple.

Concerning Nigerian Banks:
Its a business and they are there to maximize shareholder's profit, not play "father-Christmas" to some embezzling outfit like Bi-Courtney!
If any of you are shareholders of these banks, would you like your share profit/dividend to become zilch just because you want to "help" Babalakin to build road? C'mmon, be honest!!.

I can predict that the South African Bank will not give him the money on a platter of gold, if they will at all.
*Why should he be the winner of a bid, when he has no money to finance the bid?
*Why was the bid not revoked when it was obvious he cannot provide funding? is it until 5,000 more souls are lost on that road?
*Why has the project not been awarded to another reputable company that can find and provide funding?
*What has "Adeboye" got to do with this? Is he lending money to the project or is he just providing "Spiritual P.R" so as to further hoodwink our people?
*What has Papa Adeboye has to say about the "start-work, stop-work" that has been going-on in the last 8yrs, on that road? Does it take 8yreas to "banish those demons" that are "stopping the work" on that all-important road? Na waaO!
*Why did Pastor Adeboye not "openly" tell this Babalakin of a guy, the home truth? Why is he not always telling "thieves" that come to him for spiritual certification, some open, home truths? Maybe he has been telling them but we are not hearing about it neither are we seeing any positive results!
*Why does Babalakin want to "widen" a 3-lane road, to a 3-lane Road again or is someone playing funny here?

Having said all the above, l make bold to say that it is the responsibility of GOVERNMENT to take charge, when it concerns massive projects.
If the "private sector" is afraid for its money, IS THE FEDERAL GOVERNMENT ALSO AFRAID FOR ITS CRUDE OIL RECEIPTS?

Its simple, give the shitty road to Julius Berger or any other reputable firm (Not Babalakin's Bi-Courtney with their lousy reputation) to build.
Two things:
1) Let the firm source the funding from anywhere, just build a standard 4-lane road, both ways.
2) If that wont happen, Govt should fun the project and in both cases, put a Toll plaza on it.
"Users" will pay for the cost of the road in less than 10years and all this noise and spiritual intervention stupidity would be over!

No rocket-science or why are we incapable of managing "basic little" things?

Reference:

Fine, so we go back to contracting. Satisfied.

@Reference,  I have read your comments on the above post and it is basically in line with my thoughts about how Nigeria can wake up from the economic coma she has been in for decades.  The one thing that never ceases to amaze me is how Nigerians want change but insist on using the same old tried, tested, and failed methods.   In so many ways it's like a man who wants to go to the moon but insists on driving a car to get there.  In my experience the key difference between a typical Western European country like Italy, and an African country like Nigeria, is the cost of capital for investment.  Just look around the world and tell me which country has good infrastructure, and a productive economy but high cost of capital.  The answer is none, zero, zilch.  Our banks are nothing but trade finance houses who lack fresh and innovative ideas for growing their asset base, and rigorous risk management analysis to determine which business ventures are worth backing with low cost long term financing  A high percentage of our business concerns are  overly dependent on a sugar daddy government which dispenses contracts and sweet deals to them as a form of patronage.    At the end of the day,  if we are to move forward we have to change our outlook, our thinking, and most importantly our love for quick,  short term returns, otherwise we would only keep going round in a circle like a dog chasing its tail.

lastpage:



*What has "Adeboye" got to do with this? Is he lending money to the project or is he just providing "Spiritual P.R" so as to further hoodwink our people?
*What has Papa Adeboye has to say about the "start-work, stop-work" that has been going-on in the last 8yrs, on that road? Does it take 8yreas to "banish those demons" that are "stopping the work" on that all-important road? Na waaO!
*Why did Pastor Adeboye not "openly" tell this Babalakin of a guy, the home truth? Why is he not always telling "thieves" that come to him for spiritual certification, some open, home truths? Maybe he has been telling them but we are not hearing about it neither are we seeing any positive results!
*Why does Babalakin want to "widen" a 3-lane road, to a 3-lane Road again or is someone playing funny here?

mbulela:



the simplistic way these men of God deal with corruption in high places is aiding the destruction of the society.
why does darkness feel so comfortable in the company of light?
some of the people who go to these men of God are more comfortable in their presence than in the company of the masses.
I would have expected these men of evil to quake in the presence of men of God and fear for their iniquity.
in some parts of the world,religious leaders maximize their sphere of influence for accountability,ours seem to just bask in the euphoria of the influence they wield.
stop talking to them in the secret,it is making no difference.
scold them in the open.

the issues you raised in the quote above is also what i was asking earlier and it would be a better angle for us church folks to explore,instead of this abused 'touch not my anointed' phrase.

ADint:

Nigerian banks are appallingly disgusting! They never ever have the foresight to see an opportunity and grab it by the horns. It's not about Babalakin being a bad debtor, it's about our banks stubbornly refusing to finance any project that will not make them 20-30% returns a year! - Which is an impossible return on long term projects.

Our 4 biggest banks (First Bank, UBA, Zenith, GTB) range in age from at least 20 yrs to over 100 yrs, yet the combined turnover of these 4 banks at N762 billion is almost the same as 10 yrs old MTN Nigeria's at N749 billion!! How blind are these banks? Couldn't any one of them have seen the huge potential waiting to be tapped in the telecoms industry in Nigeria and set up a telecoms company and bid for one of the licenses in 2001? The licenses cost $285m which they could have easily raised, it would then simply be a case of bringing in a competent operator/investor to run the business.

South African banks are taking over most of the major long term financing in Nigeria. Dangote liquidated all his loans with Nigerian banks and moved the entire facility to South African banks at better rates and longer tenors. Believe you me, the South African banks would give Babalakin the money he is looking for, and they would be smiling back to South Africa every year with their repatriated interest income that could have easily stayed within the banking system/economy in Nigeria, but for the mindboggling greed of our banks!

Are banks in the business of running telecom companies? Which well run bank have you come across anywhere in the world that operates a telecom company? The financing part I subcribe too, but the buying of a license is a definite NO. Nigerian banks actually financed the purchase of GSM license and subsequent network roll out in 2001.

thats NIGERIA 4 u, always shifting blames, a road that has be concessioned over 4years ago, haba, wen contracts are awarded n its announced to d media thats wr it ends, no follow up, Nigeria kwenu,

We do not need prayers to build roads. We need money to build roads.

@ Ibime , May God bless you for saying the truth, (I do not mean christian god, this God i am calling have no religion) more of your personality is needed to change Nigeria.

@mbulela,

You are welcome. The rot is deep(so, so deep) but we will tear this tower of evil down.

There is no alternative.

hispy99:

Are banks in the business of running telecom companies?  Which well run bank have you come across anywhere in the world that operates a telecom company?  The financing part I subcribe too, but the buying of a license is a definite NO.  Nigerian banks actually financed the purchase of GSM license and subsequent network roll out in 2001.

Perhaps you want to go over what I wrote again. - The bank will own the license, but get an operator to run it. "The licenses cost $285m which they could have easily raised, it would then simply be a case of bringing in a competent operator/investor to run the business. ".

Banks in most of developed world own a good chunk of the businesses/industries in those economies, albeit indirectly. Which is why they are such behemoths and are able to declare such huge turnovers and profits, because they are directly partaking in the success of virtually all the businesses within and even outside their domain!

reading some individuals comment on Nairaland makes me cringe. Shows how uninformed some are.

Before you post or insult please always use google to search for information or better still try things out yourself.

1. Before he won the bid, he would have a proof of agreement with banks to lend money

2. It was after the contract came that they stalled investing the funds (they did lot of meetings and the bank reneged on their promise; contract; agreeement)

3. No millionaire sponsors project with their money. They use banks. Thats the essence of banks

4. Nigerian banks are myopic in their lending structure. In the UK, you can get a £25,000 loan spread over 5 years. In Nigeria, no bank will lend you 1 million over a 2 year period.

If you doubt me, take your small business proposal (an already existing biz o) to the bank where you have some money. Ask them for a 1 million Naira loan and see if they'll give it to you.

The bank should have just asked the Government to GUARANTEE the loan, if they are scared that babalakin will not pay back.

That is what the UK govt did recently, (i understand that we are two different nations, but i mean, banking is same everywhere, isnt it?)


Now, can anyone tell me how we can have more jobs, when we are allowing foreign institutions to invest in our country because local banks cannot get their "sogundogoji" (turn 20 to 40 instantly) returns within 1 year.

^^^^

sir,

would you care to explain your comments a bit further? are you absolving mr babalakin? the government? or both?

VolvoS60:


^^^^

sir,

would you care to explain your comments a bit further? are you absolving mr babalakin? the government? or both?

No Volvo, no one is Mr. Babalakin of issues here. Yes, he is one rotten con man, seeking to reap where he did not sow. Bad, bad man but we have not created alternatives for ourselves. We remain a nation where people seek individual advantage. We have no corporate structure. We are unable to do basic things for ourselves. If those who claim to rule over us seek only of themselves must everyone follow this model. I repeat a single defaulter does not make a business un-viable. None of those distressed banks was brought down by a single individual or a single investment. Even CBN won't permit that level of risk but why is it so hard to move forward.

If like a poster rightly affirmed banks have tried to take over MM2 and have bee prevented because of government corruption the that's where the problem lies, government. So we should be moving away from them rather and seeking alternatives rather than cozing up and depending on them. Dunno you but as we speak these same government and its corrupt operatives are raising their wages and paying for it with our taxes and collective wealth. Will everyone enjoy this raise, no but everyone will feel its negative impact - that is less and less money to provide infrastructure.

Why is it that Nigerians only excel in things that only personally benefit them. Zenith bank has done up the street in V.I. around its corporate hq. for which there's no benefit. Why can't it provide funds for the even much more along the expressway for which tolls can be paid and revenues generated. I don't get it. We Nigerians sometimes behave like the battered housewife that returns time and time again to her abuser. When are we going to get it that since government has seen we can provide ourselves with electricity, water, security and the lot they expect a natural progression to roads as well. Or when will we get it that it is better for a hundred people to gather together and buy themselves a 100 kva generator than purchase one unit 'I pass my neighbour' each.

Reference:

Or when will we get it that it is better for a hundred people to gather together and buy themselves a 100 kva generator than purchase one unit 'I pass my neighbour' each.

That, sir, is the Nigerian problem in a nutshell: Individual ability, collective stupidity.