obailala:
[size=15pt]Debt restructuring is not debt forgiveness and the states involved are not secret.

The title of this thread is deliberately misleading.[/size]

The MODs should do something about this title if this thread must make the frontpage else, Nigerians in their usual laziness to read will just rely on the wrong title and start making silly assumptions.

By the way, the 11 states involved are:
Osun State - N88.6 billion
Delta – N69.8 billion
Ogun – N55.4 billion
Imo – N37.1 billion
Ekiti – N18.8 billion
Kwara – N15.6 billion
Edo – N11.9 billion
Benue – N10.9 billion
Oyo – N9.1 billion
Bauchi – N6.5 billion
Kogi – N0.81 billion.

Economic and financial experts said the loan conversion deal was good for the banks and the state governments because the bond certificates issued to the 14 banks on behalf of the 11 states meant the states were no longer indebted to the banks.

So if states are longer indebted to the banks, who are they indebted to?? If the FG is bailing them out, doesn't it mean FG is absorbing the loans and passing the risk to all Nigerians? Doesn't it mean that the FG is increasing its debt to GDP ratio without commensurate capital inflow to our national economy? It's like your brother owes a bank and the bank comes to collect their payment, your brother is unable to pay and u step in and tell the bank let him off the hook and transfer the loan to ur name, if u default on that loan the bank will come after u not ur brother!

Make una sniff out the states nah.

Where's shymexx

Unity by hook and crook; theft and debt.
Nigger-area.

adconline:

So if states are longer indebted to the banks, who are they indebted to?? If the FG is bailing them out, doesn't it mean FG is absorbing the loans and passing the risk to all Nigerians? Doesn't it mean that the FG is increasing its debt to GDP ratio without commensurate capital inflow to our national economy? It's like your brother owes a bank and the bank comes to collect their payment, your brother is unable to pay and u step in and tell the bank let him off the hook and transfer the loan to ur name, if u default on that loan the bank will come after u not ur brother!

It is very simple, the states are now owing the federal government and they will pay every kobo they owe over a longer period of time. Seriously, what's there that you people don't understand?

seunmsg:



It is very simple, the states are now owing the federal government and they will pay every kobo they owe over a longer period of time. Seriously, what's there that you people don't understand?

So Nigerians in 36 states now own debts incurred by 11 profligate states??
These governors are rewarded for misusing their monthly allocated funds??

adconline:

So Nigerians in 36 states now own debts incurred by 11 profligate states??
These governors are rewarded for misusing their monthly allocated funds??

I think the government is right to have 're-structured the loans, civil servants in osun are being owed as much as 8 months salary likewise some other indebted states.
Further deprivation of the civil servants of there month-end reward can trigger civil unrest which can easily spread to other parts of the federation and this will not bode well for the apc led administration.
But the government should find a way of making governors/states pay for there financial recklessness , this singular action may encourage financial irresponsibility by the governors since they know that the federal government got there back.

adconline:

So if states are longer indebted to the banks, who are they indebted to?? If the FG is bailing them out, doesn't it mean FG is absorbing the loans and passing the risk to all Nigerians? Doesn't it mean that the FG is increasing its debt to GDP ratio without commensurate capital inflow to our national economy? It's like your brother owes a bank and the bank comes to collect their payment, your brother is unable to pay and u step in and tell the bank let him off the hook and transfer the loan to ur name, if u default on that loan the bank will come after u not ur brother!

The most important point to note is, the states are still in debt and would still have to pay back. Using the term 'DEBT FORGIVENESS' is misleading.

Okorocha "disgracing" Ndiigbo, imagine Imo is now in the league of "bambilala states", even as bad as TA was, Abia didn't descend to this level.

obailala:
The most important point to note is, the states are still in debt and would still have to pay back. Using the term 'DEBT FORGIVENESS' is misleading.

FG is absolving indebted states of responsibility and at the same time approved $75m for Oshiomole to waste. FG is encouraging profligacy and wastefulness. Oil prices have fallen below $40 and these governors are going to be broke again in 6 month. GMB is spending money he doesn't have bailing politicians that contributed to his elections. Capital budget is at all time-low and we are bailing out spendthrift governors

OGOg:

I think the government is right to have 're-structured the loans, civil servants in osun are being owed as much as 8 months salary likewise some other indebted states.
Further deprivation of the civil servants of there month-end reward can trigger civil unrest which can easily spread to other parts of the federation and this will not bode well for the apc led administration.
But the government should find a way of making governors/states pay for there financial recklessness , this singular action may encourage financial irresponsibility by the governors since they know that the federal government got there back.

How does this benefit states that paid their workers? How does a bridge built in Ogun state with monthly federal allocation benefit a farmer in Daura? GMB doesn't get it when it comes to economics. This is our commonweath and should Ve been used to fund capital projects or pay states for projects undertaken on behalf of FG. You don't spend ur allocation then borrow and NATIONAlIZE the responsibility to pay back what u owe!!

obailala:
[size=15pt]Debt restructuring is not debt forgiveness and the states involved are not secret.

The title of this thread is deliberately misleading.[/size]

The MODs should do something about this title if this thread must make the frontpage else, Nigerians in their usual laziness to read will just rely on the wrong title and start making silly assumptions.

By the way, the 11 states involved are:
Osun State - N88.6 billion
Delta – N69.8 billion
Ogun – N55.4 billion
Imo – N37.1 billion
Ekiti – N18.8 billion
Kwara – N15.6 billion
Edo – N11.9 billion
Benue – N10.9 billion
Oyo – N9.1 billion
Bauchi – N6.5 billion
Kogi – N0.81 billion.

i knew this was coming, lagos number one on the list

that's why APC wanted power, so that they can waive their debts

Happiness87:
i knew this was coming, lagos number one on the list

that's why APC wanted power, so that they can waive their debts

And where on that list did you see Lagos state?

OGOg:

I think the government is right to have 're-structured the loans, civil servants in osun are being owed as much as 8 months salary likewise some other indebted states.
Further deprivation of the civil servants of there month-end reward can trigger civil unrest which can easily spread to other parts of the federation and this will not bode well for the apc led administration.
But the government should find a way of making governors/states pay for there financial recklessness , this singular action may encourage financial irresponsibility by the governors since they know that the federal government got there back.

you are not answering the guys question.the fg is shorting the remaining 25 states,illegally

adconline:

FG is absolving indebted states of responsibility and at the same time approved $75m for Oshiomole to waste. FG is encouraging profligacy and wastefulness. Oil prices have fallen below $40 and these governors are going to be broke again in 6 month. GMB is spending money he doesn't have bailing politicians that contributed to his elections. Capital budget is at all time-low and we are bailing out spendthrift governors

It was an economically 'expedient' move. If things got out of hand, it's ordinary Nigerians that would suffer it and as usual, Nigerians will always blame the FG and not the wasteful governors; that is not to say I'm holding brief for the profligate governors though. Do not forget however that this is not debt forgiveness.

Happiness87:
i knew this was coming, lagos number one on the list

that's why APC wanted power, so that they can waive their debts

Are you okay?

seunmsg:


And where on that list did you see Lagos state?

Other states are filing their paperwork. Lagos might be on the list.
So far 8 APC states combined debt stock is N235bn while while 3 PDP states combined debt stock is N90bn

obailala:
It was an economically 'expedient' move. If things got out of hand, it's ordinary Nigerians that would suffer it and as usual, Nigerians will always blame the FG and not the wasteful governors; that is not to say I'm holding brief for the profligate governors though. Do not forget however that this is not debt forgiveness.

how is it economically 'expedient' when the states in question have their debt profile bankrolled into FG portfolio without national assembly approval and unto the remaining 25 states.

obailala:
It was an economically 'expedient' move. If things got out of hand, it's ordinary Nigerians that would suffer it and as usual, Nigerians will always blame the FG and not the wasteful governors; that is not to say I'm holding brief for the profligate governors though. Do not forget however that this is not debt forgiveness.

It's pure waste by GMB to help his sponsors just the like GEJ helped his sponsors after 2011 elections. We are spending money we don't have and making double payment for allocations that had already been paid to governors. Capital projects are still unfunded and GMB is yet to submit supplementary budget. It's not the responsibility of all Nigerians to help states like Osun, Imo etc pay their workers. States should hold their govs responsible not Nigeria!!

baralatie:

how is it economically 'expedient' when the states in question have their debt profile bankrolled into FG portfolio without national assembly approval and unto the remaining 25 states.

Just ask him! That's the reason GMB fired the guy at DMO and chooses not hire finance minister and economic adviser. GMB has increased national debt without adding one kobo to out GDP. Our credit rating could be impacted and cost of borrowing would go up. GMB's staccato manner of handling national issues is going to further sink Naija.

obailala:
Are you okay?

you should have told me you are not