The Peoples Democratic Party in the south-west is describing the plan by the Action Congress of Nigeria government in Lagos State to source 80 billion naira bond from the capital market as not only criminal but a disservice to the people of Lagos State.
“It is ridiculous for a State like Lagos, that is making over N25 billion monthly as Internally Generated Revenue, to be going cap in hands to borrow N80 billion that it can make on its own under four months,” said the party, warning of dire consequences that could come from the debts it alleges that the ACN governments are getting into.
Mr. Kayode Babade, the zonal publicity head of the party, in a release issued today, expressed concern about the borrowing, expression suspicion about i
“it appears there are more to this issue of Bond that the (Action Congress of Nigeria) governors have fallen in love with than meet the eyes, and the Central Bank of Nigeria, the Security and Exchange Commission and other financial clearing houses must do everything possible to checkmate the rate at which the states are obtaining loans.”
The PDP said it suspected that the Bond could be a means of bringing into Nigeria stolen funds from abroad, calling on security agencies to take more than passing interests in the bond issue.
“In Nigeria today, Lagos State owes the highest debt apart from the federal government. Lagos State was said to have, as at June 30, 2012, accumulated an external debt profile of $517,677,672 (more than half a billion dollars).
“Ironically, Lagos State is the richest State in Nigeria with monthly IGR of over N25 billion and most Lagosians are in charge of their daily existence, with the State government responsible for virtually nothing.
“It should then worry well-meaning people if inspite of the huge debt being owed and the huge resources available to it, a State like Lagos is going to the capital market to take N80 billion Bond again.
“Presently, Osun State alone is owing over N120 billion, Ekiti is owing over N30 billion and is rumoured to be planning to take another N30 billion while Ogun State is on the verge of taking N100 billion bond.
“Obviously, with the way these ACN controlled States are taking loans and bonds, and giving promissory notes on multi billion naira contracts, the States will go bankrupt soon.
“It is therefore on this note that we are once again calling on well meaning Yoruba people to intervene in the affairs of the region by preventing these ACN governors from mortgaging the future of our children through frivolous loans because most of the loans being obtained now cannot be paid back in the next 50 years.”