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Lagos Seeks N31bn Loan From World Bank - Politics - Nairaland

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Lagos Seeks N31bn Loan From World Bank by Nobody: 1:56pm On May 24, 2012
Lagos State Government is seeking N31.4 billion ($200m) loan from the World Bank, to fund strategic projects in the state this year.

The government also said it paid over N192 million as compensation to dependants of 249 deceased staff in the state in the year under review.

Commissioner for Finance, Mr. Adetokunbo Abiru, yesterday, during a ministerial briefing in Lagos, to commemorate the first year of the second term in office of Governor Babatunde Fashola, said the fund was to assist the government in key areas of the budget.

Abiru listed the areas to include budget planning and execution, investment, climate improvement and revenue generation enhancement, explaining that it was a budget support granted by the bank for three consecutive years to the government.

http://www.vanguardngr.com/2012/05/lagos-seeks-n31bn-loan-from-world-bank/
Re: Lagos Seeks N31bn Loan From World Bank by Nobody: 1:58pm On May 24, 2012
Three questions:

1. How much is the state government owing at the moment?

2. What is the repayment plan for this loan?

3. What specific "strategic investments" are they looking at?
Re: Lagos Seeks N31bn Loan From World Bank by icez: 2:46pm On May 24, 2012
What specifically are the funds meant for.

1 Like

Re: Lagos Seeks N31bn Loan From World Bank by manny4life(m): 8:37pm On May 24, 2012
HNosegbe: Two questions:

1. How much is the state government owing at the moment?

2. What is the repayment plan for this loan?

3. What specific "strategic investments" are they looking at?



To my knowledge, and if I remember correctly about last year when Lagos went to the capital market, Lagos debt profile is about $2.2 billion and more. Lagos has huge debts, only God knows how they intend on paying it.
Re: Lagos Seeks N31bn Loan From World Bank by lagerwhenindoubt(m): 9:01pm On May 24, 2012
HNosegbe: Two questions:

1. How much is the state government owing at the moment?

2. What is the repayment plan for this loan?

3. What specific "strategic investments" are they looking at?

One Word! Election 2015 wink
Re: Lagos Seeks N31bn Loan From World Bank by aljharem(m): 9:01pm On May 24, 2012
This is bad, how do they intend to payback all these money ?
Re: Lagos Seeks N31bn Loan From World Bank by aljharem(m): 9:11pm On May 24, 2012
lagerwhenindoubt:

One Word! Election 2015 wink


+10 this is tinubu's work
Re: Lagos Seeks N31bn Loan From World Bank by Beaf: 9:26pm On May 24, 2012
Lagos already accounts for 9.9% of Nigeria's external debt (yes, money borrowed by states is grouped as part of our external debt).
For all the money borrowed, I do not see commensurate development.

What exactly is the Lagos govt borrowing these huge amounts for?
Re: Lagos Seeks N31bn Loan From World Bank by Fhemmmy: 11:23pm On May 24, 2012
manny4life:
To my knowledge, and if I remember correctly about last year when Lagos went to the capital market, Lagos debt profile is about $2.2 billion and more. Lagos has huge debts, only God knows how they intend on paying it.

Ummmmmm
Re: Lagos Seeks N31bn Loan From World Bank by Kobojunkie: 11:27pm On May 24, 2012
HNosegbe: Lagos State Government is seeking N31.4 billion ($200m) loan from the World Bank, to fund strategic projects in the state this year.

The government also said it paid over N192 million as compensation to dependants of 249 deceased staff in the state in the year under review.

Where are the Fashola media boys rats?
Re: Lagos Seeks N31bn Loan From World Bank by phantom(m): 11:34pm On May 24, 2012
grin...you really expect to see them?
Re: Lagos Seeks N31bn Loan From World Bank by manny4life(m): 11:47pm On May 24, 2012
Fhemmmy:

Ummmmmm


How do you mean by Ummmmmm?
Re: Lagos Seeks N31bn Loan From World Bank by Kobojunkie: 11:52pm On May 24, 2012
On a different note, I think the state has probably realized that you cannot build a state on PPP. All that PPP balderdash only goes so far.
Just hope that when it finally gets the money, it is put to good use i.e projects that actually benefit the majority, and not just the elite or the haves in the state.
Re: Lagos Seeks N31bn Loan From World Bank by ektbear: 11:53pm On May 24, 2012
Lagos State doesn't have $2 billion in debt. More on the order of ~$400 million external, ~$600 million internal.
Re: Lagos Seeks N31bn Loan From World Bank by ikeyman00(m): 11:55pm On May 24, 2012
@@@@

lookin at all the empty houses in spain;we the ndi igbo in lagos are seriously worried about things cool

can fash tell us how those laon will be payed back plz

eko o diwa serious oo
Re: Lagos Seeks N31bn Loan From World Bank by ektbear: 11:56pm On May 24, 2012
If the World Bank is willing to provide this loan at a good interest rate, and the money is used for a good purpose, then there is nothing wrong with this.
Re: Lagos Seeks N31bn Loan From World Bank by manny4life(m): 2:09am On May 25, 2012
ekt_bear: Lagos State doesn't have $2 billion in debt. More on the order of ~$400 million external, ~$600 million internal.


Come on brother, a thourough search on NL archives does state differently. These figures if I'm correct were before he and other states like Rivers, etc went into the capital markets in late 2011 and borrowed more than $1billion. Then again, I could be wrong, but let me gather some more info before I spread false alarm
Re: Lagos Seeks N31bn Loan From World Bank by ektbear: 2:11am On May 25, 2012
Eh. People say all sorts of nonsense on NL. Someone earlier today told me that the SS's population is 20 million.

I am a man of hard facts, not of sentiment and hearsay on NL grin

I await the conclusion of your investigation, though.
Re: Lagos Seeks N31bn Loan From World Bank by Nobody: 2:13am On May 25, 2012
Beaf: [b]Lagos already accounts for 9.9% of Nigeria's external debt (yes, money borrowed by states is grouped as part of our external debt).[/b]
For all the money borrowed, I do not see commensurate development.

What exactly is the Lagos govt borrowing these huge amounts for?

Doesn't Lagos accounts for have more than 10% of Nigeria's population?
Re: Lagos Seeks N31bn Loan From World Bank by manny4life(m): 2:22am On May 25, 2012
ekt_bear: Eh. People say all sorts of nonsense on NL. Someone earlier today told me that the SS's population is 20 million.

I am a man of hard facts, not of sentiment and hearsay on NL grin

I await the conclusion of your investigation, though.


According to the DMO, as of December 31st, Lagos external debt stood at $491,847,295.53. I'm yet to look up the domestic data, however, if we're to go by a ratio of 2:1 based on your analysis, you will see that the numbers do stack up high. Please, bear with me, I still have to dig through though
Re: Lagos Seeks N31bn Loan From World Bank by ektbear: 2:28am On May 25, 2012
So ~$25/capita in external debt.

Surely this should not be seen as particularly onerous..
Re: Lagos Seeks N31bn Loan From World Bank by manny4life(m): 2:31am On May 25, 2012
ekt_bear: So ~$25/capita in external debt.

Surely this should not be seen as particularly onerous..


Damn, how did you get $25? What size population count are you using? 19+million people? In addition to that,technically, it's not a problem, but given the theory of $1/day, you will see that a $25/capita is on the high side.
Re: Lagos Seeks N31bn Loan From World Bank by ektbear: 2:34am On May 25, 2012
Yep.
Re: Lagos Seeks N31bn Loan From World Bank by ektbear: 2:35am On May 25, 2012
Or if you don't feel comfortable with population estimates, use the GDP reported by various reputable media companies like the economist. Divide debt by that (~1%)
Re: Lagos Seeks N31bn Loan From World Bank by manny4life(m): 2:41am On May 25, 2012
ekt_bear: Or if you don't feel comfortable with population estimates, use the GDP reported by various reputable media companies like the economist. Divide debt by that (~1%)


I was asking that you provide me the estimate you're working with because it does seem like you used an estimate of, in fact to be precise, it was 19,673,892 residents, though that number is way TOO HIGH for Lagos, nevertheless, I don't mind using the sources you have suggested but let's be consistent with the number though. We wouldn't want to claim 19million when it comes to debt/capita and when it comes to GDP/capita, we use the standard 16million.

Yeah, no argument that that debt/GDP ratio is low, after all Nigeria's own is low as well under double digits (though I haven't calculated it and I won't speculate), however, Nigeria is having a hard time paying it back. Please if you have reputable sources like you said, I like to gather info from them --- very important to me because Nigeria's lack of record archives drives me nuts.
Re: Lagos Seeks N31bn Loan From World Bank by ektbear: 2:44am On May 25, 2012
I'm comfortable with whichever number you choose to use for population; it won't make much of a difference. 16 or 20 is fine.

Whichever number you use, the final conclusion will be that the per capita debt is low for Lagos State.
Re: Lagos Seeks N31bn Loan From World Bank by manny4life(m): 2:53am On May 25, 2012
Anyway, my point is if we continue on this trend, it's not healthy. The FG is having issues paying its own debt, though it does come low per capita, but not everyone can afford it. Anyway, I'll leave this talk for tomorrow morning, got to sleep now.
Re: Lagos Seeks N31bn Loan From World Bank by ektbear: 2:56am On May 25, 2012
Have a good night dude.

I disagree with your claim, though. It depends on what the money is being used for.

It is not bad for people to be suspicious of loans and ask what the purpose is. But not all loans are bad.
Re: Lagos Seeks N31bn Loan From World Bank by Beaf: 2:56am On May 25, 2012
manny4life: Anyway, my point is if we continue on this trend, it's not healthy. The FG is having issues paying its own debt, though it does come low per capita, but not everyone can afford it. Anyway, I'll leave this talk for tomorrow morning, got to sleep now.

States borrowing is part of the FG debt, because the FG borrows externally on behalf of the states.
Re: Lagos Seeks N31bn Loan From World Bank by manny4life(m): 2:20pm On May 25, 2012
ekt_bear: Have a good night dude.

I disagree with your claim, though. It depends on what the money is being used for.

It is not bad for people to be suspicious of loans and ask what the purpose is. But not all loans are bad.


Loans are good but being modest about is key. Piling up loans is my only concerns. Most of these loans are not used for revenue generating ventures rather for social fulfillment which isn't very thoughtful. In my own theory of loans or debt, request a loan ONLY IF you can turn the money around for revenues and possibly profit used to service the loans.

Beaf:

States borrowing is part of the FG debt, because the FG borrows externally on behalf of the states.

Beaf, I have to disagree with you on this one. How can the FG be paying loans from the states govt? I won't speculate about this, but this needs thorough research, and I will appreciate it if someone can shed more light on this. Nevertheless, I'll state my objections, though it may be wrong but ---

1. I do not believe that states borrowing is part of the FG debt but part of the Sub-National Debt Profile which makes up both the federal and states external debts. The reason is the FG and States are different entities on their own, they source their loans differently. Although, the FG MAY act as a guarantor on these the loans on in the absence of repayment which leads to default but IMO does not borrow externally on behalf of the states.

2.IMO, and according to the DMO, the FG has it's own debt aside from the states which it uses to fund other committal obligations; those are the debts I'm talking about, not the Sub-National External Debt Profile that is made up of both the Federal and States. Lagos for instance is paying the debts it owes not the FG paying the debt of Lagos, that is wrong.

Now my assertion may be wrong and flawed, I'll agree to it only if you or someone can shed extensive details into this.

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