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670.42 % Debt: A violation of DMO rules, ADP tells Ambode

.. Says Excessive Borrowing Does Not Reflect in Physical Growth.

The Action Democratic Party (ADP) has called on Governor Ambode to exercise immediate restraint in his borrowing spree; saying that the current over borrowing in the state is mortgaging the future of Lagosians.

ADP
ADP

In a statement made available to newsmen on Tuesday by the Lagos State Publicity Secretary of the party, Prince Adelaja Adeoye, he said, Lagos has always been known to be the most indebted state in Nigeria and that the hype that Lagos is self sufficient in terms of wealth is far from reality.

The party said that according to the guidelines of the Debt Management Office (DMO), the debt status of each state should not exceed 50 per cent of the statutory revenue in the previous 12 months.

ADP argues that in the light of the DMO guidelines on debt management framework, citing sections 222 to 273 of the Investment and Securities Act, 2007 pertaining to debt sustainability, the debt to income ratio of states should not exceed 50 per cent of their statutory revenue for the preceding 12 months but that the APC led administration in the state has flouted this.

ADP states that the debt to gross revenue ratio of 930.96 per cent is outrageous and that available projects does not reflect the actual borrowing in the state. The party says that they have no choice but to ask what the government of the day has been spending these monies on.

ADP says that most of the physical infrastructural development that made Lagos what it is today, were either constructed during the military era when Lagos was the capital of Nigeria or during the political leadership of Alhaji Lateef Jakande.

The party says that it is now obvious why the APC led government in the state is refusing to make public its financial statements; the party says that the government is run with no iota of accountability to Lagosians even with the craze of increasing taxes indiscriminately.

ADP is shocked that Lagos state debt has hit $1.47billion, the highest in the history of any state government in Africa. The party has reiterated its call for Governor Ambode to make open the budget of Lagos State and implement the Freedom of Information (FOI) Act in the state to enable Lagosians have access to information about the activities of their government.

Speaking on the infrastructural development in the state, ADP said that most of the projects initiated by the Ambode led government are just for show and for photo op. The party claims that anyone who doubts their position should take a tour to the nooks and crannies of Lagos where the people live in very inhumane conditions.

The ADP says that most of the communities in the state lack basic amenities such as access to water, electricity, security, affordable healthcare, affordable housing, refuse and sewage disposal mechanisms, etc.

ADP has however assured Lagosians to be ready for massive reconstruction of Lagos as they are waiting to take over power in 2019. The party has said emphatically that they will open the books of Lagos to the public and they will give to Lagosians that real status of Centre of Excellence.


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