LAGOS JUSTIFIES ITS OVER 160 BILLION NAIRA DEBT.

Governor Babatunde Fashola, yesterday, justified the decision of the Lagos State government to take a loan of over N160 billion from the World Bank, saying strategies were in place to ensure it is repaid on time.
Fashola said this while fielding questions from journalists shortly after an inspection tour of the ongoing construction of the light rail terminus at Orile- Iganmu, Lagos.

The governor, who said he was satisfied with the work done so far on the project, expressed disappointment that the work did not move as smoothly as expected. He, however, expressed optimism that the project should have been completed in another 12 months.
Speaking on the rationale behind the debt, Governor Fashola said: “I think it was the debt management office of the Federal Government that published the report that we have a debt of about N160 billion. I don’t know the intent of the publication but if it was to inform the public, I think we have always kept the public informed anytime we borrow money. If there are other intentions behind that, only those who make the publication would know what those intentions are.
“When people talk about debt of a state like Lagos, they forget that after Nigeria, South Africa, Egypt and one other country, we have the fifth largest economy in Africa. When you are talking of about a billion naira debt to a population of over 21 million people… because if you are measuring the debt, you also have to measure the responsibility. Those are the things people keep in isolation,” he observed.
According to Fashola, the Lagos State government already has in place strategies for the repayment of the loan, saying the Federal Government was in the know of the state’s decision to take the bond and it approved it.
“The truth is that no state in Nigeria can borrow money outside, from any multilateral agencies, without the approval of the Federal Government. So, what they did not say is that they approved it. No state can raise money by bond the way we have done without the FG’s approval.
“The SEC and NLC are all FG regulatory agencies through which we must pass. If they said okay, it means there must be something good about the debt. Our rating as a state is the same as that of the Federal Republic of Nigeria, BB Minus-Stable with a positive outlook. We are the only state in Nigeria that has that rating.
“The first bond that was taken during my first tenure has been paid; the first tranche has been paid. I think the second tranche will fall due around 2016 or 2017 and we are already making provisions.NMOL.