By Emmanuel Elebeke
Lagos State, yesterday, secured $200 million World Bank credit to support a range of reforms on fiscal sustainability, budget planning, budget execution, and the investment climate in the state.
The credit is expected to help sustain the state’s recent economic growth and poverty reduction index, while continuing to deliver social services to the city’s expanding population.
A statement by Senior Communications Specialist, World Bank, Nigeria, Obadiah Tohomdet, said the fund from the International Development Association, IDA, which supports the Third Lagos State Development Policy Operation, is the last of a series of two development policy operations to improve public finances and the investment climate in a fiscally sustainable manner.
Lagos State government was said to have, in the past decade, achieved significant economic growth, improved its infrastructure and services, significantly reduced crime, and brought millions of people out of poverty.

Gov. Ambode
World Bank Task Team Leader for the Project, Jariya Hoffman, said: “The operation is focused on furthering improvements in the transparency of the budget system, effectiveness of public expenditures, and the business climate will help sustain the pace of economic growth and thus the state’s positive momentum towards income equality and the delivery of public services.
“With enhanced budget transparency and efficiency, adequate funding can be shifted to programmes to benefit the state’s booming population, especially the poorest families.”
According to him, the operation will enhance the state government’s fiscal sustainability by anchoring the budget in a framework that accounts for key fiscal risks and improves revenue collection.
Also, he explained that the project would support adopting a new approach to budget planning and preparation and ensure adequate allocation of budgetary resources to social services such as education and health.
In addition to budgetary improvements, the project is equally expected to support a reduction in the cost of land transactions and development and introduction of an electronic web-based system for processing of planning permits that will help to improve the business climate and attract new investments.
Also commenting on the credit, World Bank Country Director for Nigeria, Marie Francoise Marie-Nelly, said: “This operation is designed to assist Lagos State in its quest to continue its recent success in spite of the challenges brought on by rapid economic and population growth.
“As an urban agglomeration that has reduced income inequality during double digit economic growth, Lagos is an example of inclusive growth in Nigeria.
“If the Lagos experience is sustained, there is strong potential for this type of inclusive growth to spread to other parts of Nigeria.”
The World Bank’s IDA was established in 1960 to help the world’s poorest countries by providing grants and low to zero-interest loans for projects and programmes that boost economic growth, reduce poverty and improve poor people’s lives.
IDA is one of the largest sources of assistance for the world’s 77 poorest countries, 39 of which are in Africa.
Resources from IDA bring positive change for 2.8 billion people, the majority of whom live on less than $2 a day.
Since 1960, IDA has supported development work in 112 countries. Annual commitments have averaged about $18 billion over the last three years, with about 50 percent going to Africa. http://www.vanguardngr.com/2015/07/lagos-gets-200m-world-bank-credit/
Cc: lalasticlala

Nice one Ambode, you are better than WIKE of Rivers who in a Month has borrowed more than 50 Billion Naira.

Hmmm, Ambo ooo, this is a good time to be in government

Despite Lagos huge debt, the govt is still borrowing. Na wa.

ShowYourCertificate:
Despite Lagos huge debt, the govt is still borrowing. Na wa.

Lagos State External Debt now increased to $1.2 Billion. Internal debt is unquantifiable.
APC with "GBESE" are one and the same

Where are dolt brain complaining about Wike? Tinubu will remove 100million dollars first as his electoral expenses.

Lagos debt might be as high as FG debt before four years time whereas nothing on ground to show for it

Xetima:


Lagos State External Debt now increased to $1.8 Billion. Internal debt is unquantifiable.
APC with "GBESE" are one and the same

Bro, if I agree with what you wrote up there, both of us would be wrong

ewohh,!!! these ppl weh de approve state loans know de check their dept ballance? abi na bkos of wetin them sef wan chop

ShowYourCertificate:
Despite Lagos huge debt, the govt is still borrowing. Na wa.

Yes ooo, that's what runs government, the credit facilities are always granted for development, no government is self sustenance matter how high your IGR is, Ambode is an accountant, sure he must have put many economic points in front before seeking the. Credit facility. We just hope the facilities are used for the right purposes.

Laredojohn:

Yes ooo, that's what runs government, the credit facilities are always granted for development, no government is self sustenance matter how high your IGR is, Ambode is an accountant, sure he must have put many economic points in front before seeking the. Credit facility. We just hope the facilities are used for the right purposes.

Lagos IGR doesnt even come close to helping the development of the state. If borrowing is the only way out, it wont be long before it unravels. Greece and Puerto Rico had (/access to) more qualified accountants and economists bt it still didnt prevent a crisis. There has to be a balance...dats hw others do it.

ElekeNtioba:


Lagos IGR doesnt even come close to helping the development of the state. If borrowing is the only way out, it wont be long before it unravels. Greece and Puerto Rico had (/access to) more qualified accountants and economists bt it still didnt prevent a crisis. There has to be a balance...dats hw others do it.

Sure the balance has to be there, that's where utilizing the loans appropriately comes. In, In a country like Nigeria, the government both Federal, States and LG alike can't survive without external borrowings, the after effect of these loans is key, likewise making a drastic effort in diversifying the economy from oil, if this is done effectively, that's when borrowing can be reduced to the barest minimum, otherwise they keep getting these loans to keep Government moving, whatever form they come, credits, bonds, treasury bills, etc