Lagos is working, debts are piling up, Fashola explains why

by Emma Chidiogo

The Governor of Lagos State, Babatunde Fashola, has said that the huge loans obtained by the administration is used in financing capital intensive projects as the Light rail, expansion of the Lagos-Badagry Express Way, Mile 12 – Ikorodu, among others.

Fashola, who spoke while inspecting progress of work at the Iganmu Terminus of the Lagos Light Rail Mass Transit project, said the projects embarked upon by his administration was aimed at adding value to the life of the average Lagosian.

“So if the people of Lagos want rail, if they want to see a 10 lane highway on Badagry Express Way, if they want the work we are doing in Mile 12 into Ikorodu expansion to continue, if they want to see all of the developmental works that will add value to their lives, that is the only way to finance it,” he said.

He argued that getting loans was the only way to finance such projects, adding that if the State does not borrow, it means it has to wait every month for those who want to pay rent, Land Use Charge, Tenement Rate, Drivers License or a parcel of land and other rents pointing out that no government could accomplish rapid development at that rate.

“If we wait, it is a bit-by-bit income. If you look at all our IGR, it is all secured against these assets. I can’t tell our contractor that wait, let me go and collect money from licensing office to come and give you. This is how it works because a contractor has designed a project which is going to benefit our people, it would cost billions of naira to do”, he said

Also speaking on a recent publication about the state’s huge amount of foreign debt, the Governor noted that his administration had never borrowed secretly.

“When we were doing the DPO you were there. I have been to the House of Representatives to say that we have a loan application with the World Bank for $600 million”.

Fashola maintained that Lagos is the only sub -national government in Africa that has benefited from such a facility.

“Of all the sub-national governments in the whole of Africa, we are the only beneficiary government. The only other two countries where their sub-nationals have benefited is in Brazil and in India.

“The thing to understand is that there was a debt of about one billion dollars which is roughly around N160 billion. I could not decipher the intent and purpose of the publication, but if it was to inform the public, the State has always kept the public informed every time she borrowed money and if there were other intentions, only those who make the publications will know what their intentions are,” the governor said.

He added that when people talk about debt of a state like Lagos, they forget that after Nigeria, South Africa and Egypt and one other country in Africa, Lagos is the fifth largest economy in the whole of Africa.

Fashola noted that the first tranche of the bond that was taken during first tenure has been paid, adding that the next one would fall due around 2016 or 2017. And that there has been no support by way of direct cash support from the federal governor for any of its big projects.

Leave a reply

Your email address will not be published. Required fields are marked *

cool good eh love2 cute confused notgood numb disgusting fail