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Political Parties Laud FG effort of curbing Fashola’s excessive loan taking

By on December 3, 2012

The efforts by the Federal Goverment to caution and block additional loan request by the Lagos State Government from the World Bank has been applauded by the Conference of Political Parties in the State.

This is coming a week after the Babatunde Raji Fashola administration achieved a subscription for its N80 billion bond for the financing of  infrastructural projects earmarked and undertaken by the Government.

The group said the Lagos State Government had showed that it cannot manage its funds especially the ones from Internally Generated Revenue which is huge enough to finance some of the projects it is seeking loan for.

Chairman of the League of Lagos Political Parties (LLP) Chief Udoka Udeogaranya made the statement while reviewing the Policy direction of the Governmentt, he said “The ethics of good governance implies a government ability to plan, budget and implement monies accrued to the State and not on extravagant loans that may not be granted by the capital market”.

It is on record that the State has the best taxation policy and strategy which has become a key source of  revenue, it will be  therefore amazing how the State after its bond surge, will still be requesting for another round of loans from the World Bank.

Part of Nigeria’s Political economic crisis in the past stemmed from a barrage of loans  acquired for extravagant and unnecessary ventures, which became a burden for successive governments to clear, until the Obasanjo administration boldly got a debt forgiveness for the country.

Chief Udeogranya buttressed  this assertion by further stating that “To therefore borrow and tie subsequent governments, whether emanating from the same party or from the opposition parties into redundancy but servicing accumulated debts over the years, must be resisted by all concerned quarters, particularly the Federal Government”.

The issue of Debt crisis has become a serious debate from United States, Japan to Greece, which is therefore understandable why the LLP is advocating for more responsibility and frugality in the Lagos State management of State and the issue of requesting loans.

One Comment

  1. ftotal

    December 3, 2012 at 9:40 pm

    They are leaving in 2015. So they are trying to load there accounts for raining days. See the sham called Eko 2012 and see how many commissioners , girlfriends that will become instant millionaire in just two weeks.