The Peoples Democratic Party, PDP, in the South-West has described plans by the Action Congress of Nigeria, ACN,government in Lagos State to source N80 billion bond from the capital market as not only criminal, but a dis-service to the people of Lagos State, who are already burdened by the huge debt owed .
The party reiterated its warning on the dire consequences of the huge debt the ACN state governments in the South-West region are plunging the region into, adding that, “It is ridiculous for a state like Lagos that is making over N25 billion monthly as Internally Generated Revenue, IGR, to be going cap in hand to borrow N80 billion that it can make on its own under four months.”
The party’s Zonal Publicity Secretary, Mr. Kayode Babade said in a statement yesterday that “it appears there are more to this issue of bond that the ACN governors have fallen in love with than meet the eyes.
He added that the Central Bank of Nigeria, CBN, Security and Exchange Commission, SEC 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 more than half a billion dollars.