NewStats: 3,262,799 , 8,178,188 topics. Date: Tuesday, 03 June 2025 at 03:37 PM 5d967

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 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/

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 debts with nothing on the ground to show for it..

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)

Chris Tunde Ngige and Tinubu we are waiting for you

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 ers 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!

eaglechild:
The major problem is that their ers 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!

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..

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.

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.

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.

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.

eaglechild:
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.

What we need to look at viz-a-viz the loan is the pay back plan, interest percentage etc. You do not come here with how much they are borrowing and expect any intelligent person to judge based on that.

I judged based on the IGR the article raised and the TOTAL debt they have accumulated so far and right now, their s looks pretty green

^^^I'm not as convinced. I'll need hard evidence.

Uyi Iredia: ^^^I'm not as convinced. I'll need hard evidence.

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.

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.

How much of that N349 Billion is gone before it is received? What goes OUT? What does it cost to run the government? Find out what is left after that, and you can better gage if it is feasible.

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.

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.

texanomaly:
How much of that N349 Billion is gone before it is received? What goes OUT? What does it cost to run the government? Find out what is left after that, and you can better gage if it is feasible.

Which is why the article should have also included how the government intends to pay back the loan and the debt they already owe. If we are to go by what the article wrote, it is all good because the N396 billion is IGR there is still the monthly allocation the federal Government pays the state each month which is not less than N10 billion a month (if I am correct)

eaglechild:
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.

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

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

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.

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

eaglechild:
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.

You are not a financial mind. That's why you could post this hogwash. Why dont you talk to one of goons who might by finance savvy?

eaglechild:
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.

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 ( 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.

fyneguy:

You are not a financial mind. That's why you could post this hogwash. Why dont you talk to one of goons who might by finance savvy?

Discussions with him is like fetching water in a basket

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 ( 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.

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.

eaglechild:
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.

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**

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**

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.

eaglechild:
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.

I have read it. Blue BRT workers are not paid by the Lagos state government

What does tribal affiliations and tribal whatever have to do here now? You asked questions and I answered you appropriately.

You made assertions which I corrected and I am still waiting for which pensioners are owed salaries oooo.

In choosing a source of finance, a finance person will consider, ongoing service cost, issue costs, the balance between debt and other sources of finance, risk, flexibility, existing covenants, cash flow etc. These things are analysed before determining if debt finance is appropriate.

Every government has a debt capacity. That you borrow to finance your expenditure is not bad as debt finance can be cheaper than other finance sources and can also make more funds available than will be from other sources. It is basic finance and financial management.

That you ignorantly put up an article without an analysis of what is optimum for the state shows your level of education.

Lagos can have the highest debt profile and so what? What does it mean? What are the implications? What are the risks? What are the cash flow implications? This is what we are more concerned about.

As long as those loans are Foreign loans with very low Interest Rates (and as long as the FG keeps a lid on them), I reali don't have much of a problem with it. What I generally have a problem with are Local loans with their high Interest Rates and hellish shorter Repayment period.

Institutions, Govt and Private, would need to borrow from time to time. They just need to be extremely Cautious and Smart, though; and, must make sure the monies borrowed go to only those Project for which they were met, which should be Productive Projects ab initio...

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, ability and frown at any act of profligacy in government spending.

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 debts with nothing on the ground to show for it..

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 worst thing is that they borrow all these money and they just pocket 50% of it and the future generation is saddled with huge debts to pay!

The same type of borrow, borrow governance they have taught Rochas, now they want to install another Ngige puppet in Anambra to start the same borrow-borrow government!

I knew when they heard Anambra was the least indebted state in Nigeria,they were going to focus on her to hand a huge debt burden on Anambra people in order to enrich themselves.

cjrane:

The worst thing is that they borrow all these money and they just pocket 50% of it and the future generation is saddled with huge debts to pay!

The same type of borrow, borrow governance they have taught Rochas, now they want to install another Ngige puppet in Anambra to start the same borrow-borrow government!

I knew when they heard Anambra was the least indebted state in Nigeria,they were going to focus on her to hand a huge debt burden on Anambra people in order to enrich themselves.

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.

@ ballabriggs...taharqa...Femmyfamous4u

Finally!!!!

Thank you!

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, ability 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.