Thursday, 2 July 2015

Lagos State unending Borrowing from Foreign Lenders



President Muhammadu Buhari on Tuesday asked the Senate to approve a $200 million World Bank loan for Lagos State.

Buhari in a letter entitled: “Request for special approval of Lagos State DPO 11 under the Federal Government external borrowing rolling plan 2015 to 2017,” requested the Senate to endorse the loan expeditiously.

The letter reads in part, “I refer to the above subject and request approval for Development Policy Operation (DPO) loan (Budget Support) of US$200 million to Lagos State from the World Bank.
“You may wish to know that the World Bank approved a DPO loan for a total sum of US$600 million to Lagos State Government in 2010 to be implemented in three tranches of US$200 million per annum.

 “The first tranche was approved by the National Assembly in the 2010-2012 Federal Government External (Rolling) Borrowing Plan and the second tranche was in the 2012-2014 plan.
“The DPO 1has been successfully implemented as adjudged by the World Bank, the Bank’s Board of Executive Directors approved the second tranche of the DPO on April 29, 2015.

“The DPO 111 was captured in the Federal Government External (Rolling) Borrowing Plan of 2014-2016 which was discussed with the National Assembly, but was not concluded.
“Pursuant to the above, therefore I seek for your support to facilitate the consideration and approval of the DPO 111 loan of US$200million to enable the state to consolidate on the gains of the second tranche of the DPO 11.

‘It is instructive to note that key programme objectives of the DPO are already beginning to show in terms of increased inflow of private investment to the state, increased private sector employment opportunities and increased internally generated revenues.”

Comment:

The World Bank had already approved  $200m loan to Lagos State in April 2015. Already, the state is the most indebted state in Nigeria . The debt of Lagos State before this loan is N700b and the level of infrastructure on the ground does not merit the huge debt incurred. While the earnings of Nigeria have dropped sharply from oil sales due to a glut in the global oil price.

The question is how can Lagos State repays back its debt ? . The State taxation is over the roof to many inhabitant of the state and also corruption is endemic. My main concern is how this money will be spent by the new Governor ,Ambode?.


The Infrastructural development in Lagos State is one sided as most of the development is towards the lekki axis where illegally acquired Landed properties of Bola Tinubu is located. Poverty is very rife and people are suffering . Too much borrowings will actually strangle the State when it comes to repayment because the state allocations from the Federal is dwindling .

The federal Government should curb states from borrowing money abroad because it is not being utilised for its original purpose . Soon, Lagos credit facilities will be withdrawn and it will join the leagues of States that are unable to pay workers' salaries . Lagos has been raped Dry by Bola Tinubu and his cronies .

MAY THE ALMIGHTY ALLAH HELP US IN LAGOS STATE AND NIGERIA AS A WHOLE.
FREEDOM

No one can continue to suppress and oppress the indigenous people of Lagos State forever . The spirit of ALLAH will eventually break the jinx. Now, we are determined to free our people from the shackles of SLAVERY imposed on us by Bola Tinubu .

FREEDOM FOR THE INDIGENOUS PEOPLE OF LAGOS STATE!, WE WANT TO BREAK AWAY FROM THE BONDAGE OF SLAVERY IMPOSED ON US BY BOLA TINUBU .

Please click the link to read full story
http://www.punchng.com/news/world-bank-approves-n39-4bn-loan-for-lagos/

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