₦airaland Forum

ballabriggs: Yes to accelerate the development of Africa, you need debt finance from external sources. That Dubai you see today grew with a lot of debt finance. Islamic finance, bonds etc It is needed to speed-up development.

Of what use is it that he reduced debt and Anambra remains a shit hole after 8 years. What revenue are we talking about? Max at N2 billion per month. Can that meet a quarter of the States development needs? Where will the rest come from?

Well do you want it to be the same as Lagos.
I can assure you Anambra has one of the best rural road networks in Nigeria, and is not poo, it also has one of the lowest poverty rates in Nigeria, as well as one of the highest literacy rates, is the state with the third highest number of professors in Nigeria, it is also one of the newer states.
Is among the second tier states after Lagos where cashless banking was started.

No need to get derogatory and pull stats out from nowhere.

Anyway lest we lose focus, we are talking about LAGOS' INDEBTEDNESS AND BORROWING CRAZE.

ballabriggs: That one Peter Obi does not borrow, does that make it appropriate?

The fact is, being below an optimum debt level could be as bad as exceeding it. It is about optimality.

Also can you finance development in Anambra without debt? Where will the funds come from?

Fact is, to develop Africa you will need to seek finance from outside as Africa cannot meet its development finance requirements. To praise a man for not seeking debt finance could be ignorant.

Really?

I am not an advocate of Peter Obi, so i wouldn't want to go singing his praises,
The facts are he is a seasoned economist, who inherited a heavily indebted state and was able to turn that around, i don't see any ignorance in commending that.
He laid an economic foundation by focusing on projects that will generate revenue, state oil refineries, breweries etc, therefore he was able to reduce his borrowing to a minimum, with this he was able to sustain his capital expenditure and clear his debts.

bestview:
They are only warming to pounce on the resources of Anambra to further enrich themselves. They have just rendered Imo state useless with heavy debt now with nothing on the ground for okorocha to show for it.

I really hope that doesn't happen.
Peter Obi is not perfect but his ability to erase all the states debt despite some massive capital project is commendable.
I only wish he allowed soludo a chance.

Imo's case is indeed disturbing, APC party ideologies with debt is not at all encouraging.
I hope Anambra doesn't get entangled with debts if APC wins which is very unlikely.

Femmyfamous4u: The truth is that even the most developed nations of the world are all indebted but what we should consider is the capability to repay the loan. I was shocked when I found out that US is indebted to the tune of $12.6 trillion although it prides itself of having best infrastructures, high life expectancy and standard of living that is befitting. As a financial expert, all countries of the world(state inclusive) are not allowed to obtain any loan exceeding 40% of GDP. Inspite of Lagos state's high debt profile, it is still "healthy" to obtain more loans but I think we all should rather demand transparency, accountability and frown at any act of profligacy in government spending.

Thank you femmy for your last statement and for artfully putting that healthy in parenthesis.
If only more of your folks share the same view.
You know very well this issue is what put US in it's present state, continually adjusting its debt ceiling.
The rest of the world (maybe with the exception of China) watches on anxiously hoping they don't goof and pull down everyone with them.

Back to Lagos,
I don't envy the person that will inherit Fashola's debts and barrage of unfinished projects.

[quote author=Mynd_44]BRT workers are NOT owed salaries. Why is it that people are not getting this issue. The only class of BRT workers which get their salary from the state government are the RED ones(LAGBUS). The Blue ones are not on the government's payroll. Plus they are not being owed, their salaries are 2 days late. They normally get paid on the 25th and today is 27. Not like it is the concern of the state government anyway.

I don't know about the pensioners. Maybe you would want to tell us the pensioners of which state government agency the state owes and come up with proof of that too.

**waiting**[/quote]Just scroll down the front page for the BRT story and read it


All what you have stated does not answer the question of Lagos' increasing indebtedness.

What I see is unfortunate satisfaction with poor governance, due to blind party and tribal affiliations.
The problem with Nigeria.

When these people retire as billionaires, then it will be too late.

U have to admire the fan spirit of murinho.
I dey beef am sha

A heart breaking goal is coming from city

A heart braking goal is coming from city

Mikel I like u but stand up

Nothing will come out of this
I said it

[quote author=Mynd_44]Have you considered that these loans are not for recurrent expenditure? Recurrent expenditure is taken cared of already.

These loans are going into taking care of the numerous capital projects on the state's hands. It does not need loans for salaries etc, it does not even need the federal allocation for that (remember the case of OBJ and Lagos).

With the fourth mainland bride, the light rail project, Eko Atlantic city, the road expansion and the water project, there is the need to outsource for funds. This is basic economic principle.[/quote]Definitely, such loans are meant mainly for capital projects,
but BRT workers are being owed,
pensioners are being owed,
let's not forget this,
Lagos is owing like never before,
and is borrowing more,

bogus capital projects are the easiest means to siphon funds from unsuspecting tax payers,

Are you putting the puzzle together now?
We need to ask questions.

why murinho dey shake head like fowl.

Oscar's free kick is the best I've seen

I pray the mods put this on the front page so that millions with similar question will be clarified.

[quote author=Mynd_44]If I make N150K each month and I want to buy a car worth 300K I can keep part of that money aside until I can raise it right?

On the other hand if what I want to buy is very important, I can decide to take a loan and a certain amount is taken from the N150- each month while what I want to deal with has been settled.

We need to ask the right questions here[/quote]Why is Lagos debt increasing astronomically despite her very large IGR?
Let's put sentiments aside here.

This is the right question.

The answer, to me is lack of visionary governance.
No one leaves more than double the debt he met in office while exiting.
Fashola needs to answer these questions.

[quote author=Mynd_44]So you believe that Lagos owes N193 billion and don't believe it generates N29 billion each month from IGR even though it is from the same article?

Perhaps we should see how much is being put into payback each month/quarter/year so we see whether this is healthy or not.

But if you make N349 Billion and owe N193Billion, it is very sustainable.[/quote]Bingo

That is the question being asked here.
If you claim to generate a humongous 29billion monthly,
why then do you have to keep borrowing.

It can only mean that
the revenue is not well managed, or the recurrent expenditure far outweighs the IGR.

Lagos has never been knee deep in debt as it is now.

We need to start asking questions.

CHELSHIT just woke up the big boys.

bestview:

I don't care if they all perish with the huge debt profile. My concern is that they want to bring the same evil party to Anambra. They will be humiliated in November..

Ngige has lost already, the focus is to rescue Lagos before APC washes it away with debts.

[quote author=Mynd_44]I don't get this. Every country or private company in the world gets loans to build up itself but what it does is to make an internal assessment and see if the loan is not in bad light and also see why they are going for it.

If Lagos makes N29 billion every month from its IGR that brings the total yearly to N348 billion every year and from the article, she owes N193 billion. I don't see what to lose sleep about here.[/quote]This is a similar problem the US is having, because they feel the debt is sustainable albeit on the short term they go about borrowing.
Forgetting that the interest keeps compounding and the debt keeps increasing till it spirals out of control.

Man city hurry up and score now.

bestview: The Islamic Yorobar Party APC criminal leaders- Tinibu and Fashole are daily smiling to the bank to stock their pockets while impoverishing their states with loans..

This is the same thing they want to use Ngige to achieve in Anambra. God will not allow the evil call APC anywhere near the Zik's Place (Anambra Govt House)

The major problem is that their supporters are so blinded by tribal sentiments that they seem not to see the truth.
Instead of calling for justice and equity they go about shouting Eko oni baje!

CHELSHIT will lose as usual

Despite the fact that Lagos has the highest debt profile among all states in Nigeria, the state is still seeking more loans. On Thursday, President Goodluck Jonathan wrote the Senate to approve the second tranche of $600 million loan approved by the World Bank under a development policy operation (DPO) scheme for which Lagos applied in 2010 and approved by the National Assembly.

The scheme, according to Jonathan’s letter, is to be implemented in three tranches by the state government. It accordingly said the first tranche of $200 million from the $600 million loan agreement with World Bank had been obtained by the state in 2011.


The state is now seeking approval to take the second tranche of another $200 million in the borrowing plan, which the president said was not captured in the 2012-2014 medium term borrowing plan, which he earlier submitted to the parliament.
“The World Bank has therefore embarked on restructuring of the project in the face of current realities in a manner that would release US$200 million for allocation to Lagos Development Policy Operation II. This is an action that the World Bank with the support of its board can undertake. They propose that the US$200 million DPO would enable the state complete some critical infrastructure projects,” Jonathan said.
However, many people would query why Lagos maintains the highest debt profile in the country, whilst it has the largest internally generated revenue (IGR) of about N29 billion a month. As at September 2013, the Debt Management Office (DMO) put Lagos debt at N193.44 billion at the ratio of N155.4 percent. But the state’s huge debt is not unsustainable. DMO DG Nwankwo recently said no state in the country at present has debt that is unsustainable and in the case of Lagos, he says evidence abounds as to what it is using the money for.
http://www.thisdaylive.com/articles/lagos-goes-for-more-loan/162727/

sagombugo: Thank you for schooling that rabble-rouser!

Kano is presently experiencing a dearth in passenger traffic because of Boko Haram.

No one wants to get blown up

torkaka: Kano airport averaged 340'000 passengers yearly between 2007,2008 and 2009

That was before the Boko Haram insurgency peaked

What about NOW?

See below
Read and be enlightened

FG Blames Low-Passenger Traffic At Kano Airport On Insecurity
http://news.naij.com/38316.html
Attempts to link the re-modelling of Mallam Aminu Kano International Airport in Kano to alleged low-passenger traffic at the airport, has been dismissed by the federal government, saying the present security situation in the city was responsible.

A newspaper report had alleged that since the remodelling of the airport, the facility had been lying dormant.

But reacting to the report, General manager, Corporate Communications of Federal Airports Authority of Nigeria, FAAN, Mr. Yakubu Dati, said the transformation of the airport ought to open it to floodgate of patronage and not otherwise.

According to him, the low level passengers’ traffic into the airport can be traced easily to the security situation in Kano, fuelled by the activities of the fundamentalist Islamic group, Boko Haram.

“We wish to state that Kano has been and will continue to be one of the major airports in Nigeria and it is because of the importance attached to the airport that FAAN embarked on rebuilding the domestic terminal which was commissioned in early 2011.

“The under-utilisation of the airport could be traced to the security situation in Kano and we believe that the state government is working effectively with the Federal Government to eliminate insurgents in the north, he said.

He was quoted as saying that the report cited other airports such as the ones in Lagos, Port Harcourt, Abuja and Enugu as airports that are active and supposedly with completed remodelled airport terminal facilities. The newspaper exposed crass ignorance in the report because there is no international terminal at Enugu airport.

“We also wish to say that in terms of facilities, the Kano airport is ahead of others in this country; that Port Harcourt terminal project is yet to be completed and that for now, the remodelled terminal at the Nnamdi Azikiwe International Airport, Abuja, is designated for domestic operations but both international and domestic services are still emanating from the facility until the international terminal is built.

“The problem of Kano airport is the issue of security in Kano. If this newspaper is actually the voice of the north, it should almost on daily basis write editorials on how to restore Kano to its glorious past. It is when this is done that the airport would begin to witness increased passenger movements that will boost the utilisation of the airport.

“We also wish to say that although the Murtala Muhammed International Airport, Lagos provides over 80 per cent of FAAN’s revenue; yet the Kano domestic and international airport terminals were completed before that of Lagos. In fact, work is still going on at the international terminal of the Lagos airport and it is hoped it will be commissioned later this year.
READ MORE: http://news.naij.com/38316.html

[quote author=Love_Decay]What is "your" source ?[/quote]I asked first

torkaka: After lagos,abuja and ph, kano is the next busiest airport in the country!
If enugu was that viable, oduah wouldn't be arm twisting airlines to land there would she?
You are clearly not the intelligent type are you?

What is your source
Kano is basically a Haj airport.

These are the incompetent party members some peeps want to entrust the fate of this country to.

Champion at owing salaries.
Leaving hundreds of workers with families to support stranded.

Leaving pensioners to die without pay.

Leaving the poor masses to pay for passage through wooden bridges owned by Sherlock omualabis, while milking the unfortunate middle class via exorbitant toll fees, enriching themselves in the process.

Yet they have all the time to orchestrate witch hunting of innocent women.

May all Nigerians stand up against this corrupt party and expunge it.

bunmifx: Fashola gov is the 1st gov that made so much revenue from Tax in Africa. Lagos State as the same GDP and population with Ethiopia but Ethiopia is more develop with good Roads. The only good road in lagos are the tolled road and some major Road. No community road is fix in lagos and the most of fix road are parch work not complete contruction. This gov kept on deceiving people with 3D pictures

Fashola is arguably the most corrupt governor in Nigeria.
I wonder why the SW media is not probing him?
Instead they are busy chasing after innocent women.

tofeenab: nigerians always allow d wool 2 b pulled ova our eyes! 4 ur info she neva transformed our airlines. She embarked on awardin contracts 4 airport renovations becos dat is where she makes kickback "income"! She neva bordered abt supportin d airlines with funds 2 acquire beta aircrafts! Nau can cee y it was beta purchasin bullet proof cars!

You sound funny

Eko bridge oni obaje oh!!!