LAGOS — GOVERNOR Babatunde Fashola of Lagos State, yesterday, faulted critics of the state government’s borrowing for development strategy, saying “such criticisms show that they have shallow knowledge about economics.”

This came as he justified the ban on public office holders from granting press interviews, saying, “it is not to undermine the Freedom of Information, FOI, law.”

The governor, who spoke during an inspection tour of ongoing projects in Badagry Local Government, said that the critics were uninformed about economics of governance.


*Gov Fashola
According to him: “It is not about borrowing, it is about ability to pay back and the debt services show that the state can pay back.

“And the borrowed funds were invested on facilities that would improve the standard of living of the residents. But if we depend on our past process of economic strategy, we will remain stagnant.

“Clearly, it shows that our critics are voodoo economists. This is a rehearsal of an old economic plan. This was the strategy adopted by the past administration.

“The first bond acquired by the state government is due for repayment and the fund is in the consolidated debt services account and the amount is about N52 billion as at December 2012. The liability that we have is N50 billion. It is not due until 2014.”

Fashola also justified the enforcement of traffic law on  Okada riders on unrestricted roads.

On Freedom of Information, FOI, law, he said the essence of the state government action was to ensure that  information were disseminated through proper process of obtaining permit from the Ministry of Information and Strategy.


http://www.vanguardngr.com/2013/02/fashola-chides-critics-over-borrowing-for-dev/



Eko o ni baje o

Laugh will kill me, what I don't get is why this man thinks he is intelligent when each time he opens his mouth he talks like a dumb fuk.
This was the same man that said they could do without oil money right?

lol at his defense for gagging his officials in a Democratic government

Every govt borrows to finance project.

FreeGlobe: Laugh will kill me, what I don't get is why this man thinks he is intelligent when each time he opens his mouth he talks like a dumb fuk.
This was the same man that said they could do without oil money right?

lol at his defense for gagging his officials in a Democratic government

There is no point trying to play smart here.his bolded comments above is self-explanatory unless you have an objection to it,then spill it out and let's hear.

Don't really understand why d most borrow

*Gov Fashola
According to him: “It is not about borrowing, it is about ability to pay back and the debt services show that the state can pay back.

No sir, I disagree. It's not just about "ability to pay back", it's more importantly about the COST OF BORROWING. You need to convince us that the interest rate on these loans is reasonable.

If you doubt me, ask the Federal Government that is currently spending N500 billion per annum on debt servicing.

Fashola carry on...pdp dey borrow and we no dey see watin dem use am do. At least we dey see watin this one dey do...carry on jor. Eko o ni baje

So how much is Lagos owing? and what are the modalities for the loan? Do they own Lagos if we cannot pay up after you must have gone?

HNosegbe:

No sir, I disagree. It's not just about "ability to pay back", it's more importantly about the COST OF BORROWING. You need to convince us that the interest rate on these loans is reasonable.

If you doubt me, ask the Federal Government that is currently spending N500 billion per annum on debt servicing.

Mr. Henry pls do some research on the COST at which Lagos State borrowed and you'll see that Fash is ON POINT..

Another foolish and dumb governor here again who believe nobody else have knowledge but him, imagine, what about the cost of payment, interest rate, payback period, or did he think lagos is his father's property? He is just been priviledge and stop running public office like is father's house. This guy should give himself some brain i beg, or he want another man to come and meet empty treasury and huge debt? Somebody should pls flog him.

Even the US borrow, so what are we talking about? The problem is not the borrowing, but utilizing the funds for the purpose they were borrowed. Thats what I think the FG is short on. http://tribune.com.ng/index.php/lead-stories/48536-nigerias-debt-profile-now-45bn-dmo-says-fg-to-borrow-more-in-2013
After Obj managed to rescue us from those deadly debts, we have been thrown back into their firm grip by the present administration. The keyword here is 'prudent borrowing'.

~Bluetooth:


There is no point trying to play smart here.his bolded comments above is self-explanatory unless you have an objection to it,then spill it out and let's hear.

my friend goto debt management office and see for your self, request for supporting document and they will make it available stop allowing fashola to spit to you what does not exist, my question is: is he an economist? For him to call some professionals voodoo economist it shows he has no respect for the ethical standard of various professions, for a charge and bail lawyer who make various draconia laws which cannot even stand the test time to suddenly become an economist it beat my imagination

~Bluetooth:


There is no point trying to play smart here.his bolded comments above is self-explanatory unless you have an objection to it,then spill it out and let's hear.

my friend goto debt management office and see for your self, request for supporting document and they will make it available stop allowing fashola to spill to you what does not exist, my question is: is he an economist? For him to call some professionals voodoo economist it shows he has no respect for the ethical standard of various professions, for a charge and bail lawyer who make various draconia laws which cannot even stand the test time to suddenly become an economist it beat my imagination

snakova: Even the US borrow, so what are we talking about? The problem is not the borrowing, but utilizing the funds for the purpose they were borrowed. Thats what I think the FG is short on. http://tribune.com.ng/index.php/lead-stories/48536-nigerias-debt-profile-now-45bn-dmo-says-fg-to-borrow-more-in-2013
After Obj managed to rescue us from those deadly debts, we have been thrown back into their firm grip by the present administration. The keyword here is 'prudent borrowing'.

any loan the fed govt took has a direct or indirect reflection on each state of the federation so you can not say because federal govt borrow then you too must continue to borrow what are you usint it for? Are you a weel barrow?

It is all about trust. The people of the state do not want the government to borrow in order to enrich one asiwaju somewhere and leave Lagos bankrupt by 2015.

I think Lagos state is one of the states that can survive without debt. It is not a must to settle for debt! Make good use of what you have. Mr Fash will only tell you the advantage(s) if any and shy far away from the disadvantages.

We are not economic illiterates. Lagos is borrowing anyway. If your contractors deliver jobs and you do not pay them on time, that is a form of borrowing. And there is plenty of that in Nigeria today. It is called domestic borrowing. For those using USA and Britain as examples, the difference is that over there the government cannot keep contractors money endlessly unless there is mutual agreement to re-structure the loans. Here, government borrows from its own people and refuse to pay, and they then come to you to approve their going abroad to borrow. It does not work that way, sir.

Why criticize fashola when you can see what he is using the borrowed funds for? Other states govt are borrowing and spending recklessly without any meaningful development in their states. Abeg make una free the man joor...

Keep borrowing to do good Baba Fash. Some people are borrowing only to keep 70% of the money to themselves. Gbenga Daniel left d coffers dry n Amosun has been borrowing too. We are however seeing the use of the money.

Too many ACN apologists and agents of state on this channel!

FreeGlobe: Laugh will kill me, what I don't get is why this man thinks he is intelligent when each time he opens his mouth he talks like a dumb fuk.
This was the same man that said they could do without oil money right?

lol at his defense for gagging his officials in a Democratic government

are u now provin ur intellgence by ur comments above? Pls, tell me a wise business man that wont shift his liabilty of new projects on borrowin.
FIY, the best adv of this technique is dt u focus on other areas while u pay in installments. Not dt he can't finance it.
U might need to ask the successful ones though.
So, wot was ur point again?

HNosegbe:

No sir, I disagree. It's not just about "ability to pay back", it's more importantly about the COST OF BORROWING. You need to convince us that the interest rate on these loans is reasonable.

If you doubt me, ask the Federal Government that is currently spending N500 billion per annum on debt servicing.

Well, from a recent TV interview, he confirmed that asides the bond, the interest rate on the loans extended to LASG is in the range of 1% and are developmental loans payable over 20-30 years. The bonds on the other hand have a shorter lifespan of 5-7 years at around 9-12%. These I am certain are well structured and the costs are budgeted for in the revenue drive for the state. You have pointed out a good thing, but give it a thought, would the government better the lives of its citizens by doing this today and reaping the benefits subsequently? I believe yes is the answer.

development and changes must always face criticism, focus on the good work and allow the critics do their job...i support you but sometimes your policies for change affects the common man and i am one of them but i love change so i must bear it.

I suspect Fashola is a nairalander!

KINGwax: are u now provin ur intellgence by ur comments above? Pls, tell me a wise business man that wont shift his liabilty of new projects on borrowin.
FIY, the best adv of this technique is dt u focus on other areas while u pay in installments. Not dt he can't finance it.
U might need to ask the successful ones though.
So, wot was ur point again?

so are you saying managing a state is the same as managing a business? Please governance is much more than dat.

Keneking: I suspect Fashola is a nairalander!

LOOOOOL . This your statement should be transfered to the jokes section

I try quote some dumb people's posts make i yab dem wella buh ma fone bring error,then I realize say na God no want M̶̲̥̅ε̲̣̣̣̥ to,probably to avoid Ban.
First,all Governments borrow,I saw somebody saying Lagos State does not need to borrow;but the USA needs to abii...I was in Lagos recently and by God,I Ơ̴̴͡.̮Ơ̴̴̴͡​ what Fashola is using the money for;which is all thepoint isn't it,our FG is spending arnd 500bn servicing debts annually,and somebody please show(not tell) M̶̲̥̅ε̲̣̣̣̥ what they used the borrowed funds for...after completing the projects he is borrowing for,I'm very sure Lagos State will comfortably pay off those debts;most of them are Capital Projects that will bring revenue to the State's Coffers.if you're still not convinced;I suggest you take a tour of the states in Nigeria and I'm sure you will see why Fashola deserves the title of the best governor in Nigeria...Ever! I see somebody calling him a charge and bail lawyer who doesn't know economics...no comme...no,I have to Comment;You are a Fool,why then does he have advisors and cabinet members,what does GEJ know about anything before he goes about tripping on his words and speaking nonsense in everywhere?did he read anything remotely similar to Governance?

Before they say I'm an ACN member;I A̷̷̴̐͠♍ NOT,I A̷̷̴̐͠♍ not old enough yet,but as soon as I A̷̷̴̐͠♍;that is the party I A̷̷̴̐͠♍ going to join,for reasons we all know. Thank you

If he checked the modality for that loan and is doubly sure Lagos State is capable of paying back BEFORE he leaves the seat....Then good

kennytidistar: Another foolish and dumb governor here again who believe nobody else have knowledge but him, imagine, what about the cost of payment, interest rate, payback period, or did he think lagos is his father's property? He is just been priviledge and stop running public office like is father's house. This guy should give himself some brain i beg, or he want another man to come and meet empty treasury and huge debt? Somebody should pls flog him.

from your Grammar and inability to express any intelligent idea coherently...*sighs*... I just wish we could exchange governors...I live in Kwara state,if you know anybody who lives in Kwara,tell him/her to mention two(2) worthy projects completed(or even embarked upon) by the present Governor,I ask for two because I know for sure the person will say "Shoprite" immediately...and then think for a long while without saying anything reasonable...if it doesn't happen like that...please tell M̶̲̥̅ε̲̣̣̣̥ and I will put an apology to you as M̶̲̥̅γ̲̣̣̥ Signature for a whole year.

Fashola is my role model

HNosegbe:

No sir, I disagree. It's not just about "ability to pay back", it's more importantly about the COST OF BORROWING. You need to convince us that the interest rate on these loans is reasonable.

If you doubt me, ask the Federal Government that is currently spending N500 billion per annum on debt servicing.

Why does he need to convince 'you'? When he has convinced me that voted for him so you that didn't vote him to power becomes irrelivant.lol.

The man is saying the truth. IGR and allocations cannot be used to execute project as and when due except you want them to save the fund for about two to three years before doing anything, an approach that I know people will frown at.

You can borrow, and through annuity repayment system, payback and you have a twin benefits of enjoying the investments or capital projects and getting your fund accumulated some where for repayment later, which you can also use for immediate expenditure if the need arises.
Most times world bank loans are cheap especially for 3rd world countries, it is different from credit clubs loans like paris club, london club, etc
He mentioned bond, for people who have financial education, bonds are riskfree loans because they involve only a fixed govt rate, no market rate which banks charge. So Fash is correct.

Intelligent man, always on point.