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Ogunnusi Accuses FG on Truncating Lagos State $600million Loan from World Bank

By on December 6, 2012

Lagos state Governor, Tunde Fashola

The war of words between the People’s  Democratic Party Led  Federal Government and the Action Congress of Nigeria Party’s led Lagos State Government over the $600million World Bank loan request has taken another dimension this time from the National Assembly level.

 

House of Representatives  Deputy Chairman, Finance Committee, Hon Michael Ogunnusi  said the Federal Government is becoming political about an issue that should  viewed from an economic perspective.

Speaking in an Interview with Journalists he raised an alarm over the non-inclusion of the Lagos State Loan proposal in the external borrowing plan of the Federal Government from the period 2013-2015, describing it as unfortunate.

It will be recalled earlier this week that Political parties in Lagos State commended the Federal Government for frustrating the World Bank loan for the State, citing the fact that the Centre of Excellence, should show skill and expertise in the way it manages its budgets and expenditure patterns.

With the recent statement from Honourable Ogunnusi, it clearly highlights the challenge of political power play and economic sustainability, the replica of the tussle between the Democrats and the Republicans over the economic future of the World’s leading economy.

He wondered why the Government will have problems with the Lagos State requesting loans, when it has been giving out loans to some West African countries and believed the politically motivated actions of the federal government should be reconsidered.

Ogunnusi sais delaying the loan would impede the progressive plans of the Lagos State in repositioning the State as major hub in Africa attracting incisive and strategic investments from key Industrial Nations in the globe.

Also the statement of the Debt Management Office Director General  Dr Kenneth Nwankwo several weeks ago that “Loans can be requested for providd they are utilized  solely for the  purpose it was requested for”.

Honourable Ogunnusi further Stated “If the door of the World Bank facility is closed by the Federal government, then we are right to say that it is political and discriminatory which is grossly unfair to the people of Lagos State”.