Obiagu1:

From experience, Nigerian government makes no more from investment. Why should you borrow money to build roads when you'll make no money out of it?

ekt_bear:

You don't make more money from the roads directly (unless it is a toll road.)

But your people get richer as a result of having better roads. Richer people => larger potential tax revenue. So indirectly the government makes more money.

Anyway, if it helps you conceptually, just pretend every road proposed is a toll road. That way the payoff is clear.

ekt_bear:

I'm not even super-religious, but I think the parable of the talents from the Bible illustrates really well why this approach is foolish.

A governor who would prefer to let the roads in his state lay in ruin rather than borrowing money to fix them is no different from the wicked and lazy servant from this parable.

You have to focus on the big picture (what provides the greatest benefit to the people in the long run?) rather than the small picture (I don't want debt.)

Obiagu1:

Until Lagos, Cross River and others are asked to pay up you'll understand.

As it stands now, it's better not to borrow!

ekt_bear:

If there is no need to borrow and ALL the infrastructure needed for a state can be done w/o any debt, then fine. But I was under the impression that the revenue of most states doesn't allow that.

To be clear, I'm not suggesting that one borrows needlessly. But if there is a wonderful opportunity that your current funds don't allow you to pursue, borrowing makes sense.

ekt_bear:

Africa has the worst infrastructure as a continent in the world.

I could see if we were some place like NYC or Toronto where the infrastructure is already great. At that point, you are probably deep into diminishing returns. Each dollar you invest in infrastructure adds less and less to the economy.

But in Africa, we are further away from diminishing returns than any continent on earth.

So if a governor tells you he won't borrow to fix road because he is afraid of debt, then that is a pretty good sign the governor has no clue what he is doing.

Obiagu1:

Any governor that borrows to fix roads is silly and a thief!

The man who had received five bags of gold went at once and put his money to work and gained five bags more. 17 So also, the one with two bags of gold gained two more. 18 But the man who had received one bag went off, dug a hole in the ground and hid his master’s money.

realchange:

I've looked at other parties in Nigeria, only APGA provides dividend of democracy without running up huge debts for future. Anambra and Imo are good examples.
APGA should change its motto to Steady Development, Zero debt.
The best policy for a developing country.

Obiagu1:

ekt_bear:

Good leadership is the key.

I'm just glad that we have relatively good leadership in my state.

Where would Dubai be today if their emir thought the same myopic way APGA does?

jason123:

Obiagu's POV is respectable. I see him as a low-risk investor. As long as the "loans or debts" are put to good use, which will in-turn, attract MORE investors. I see nothing wrong in that. The newly attracted investors will not only create job opportunities, pay taxes etc but will also improve the life of the citizens in APGA states, by improving the infrastructures in the state and increase the wealth created in state.

Some debts are worth it! APGA is too cautious . . .

Obiagu1:

I'm not a low risk investor. I'm as prudent as anything.
Save this quote: Lagos metro will crumble before 10 yrs time due to bad management.

So you pays the debt? Nigeria has its peculiar problems and that have to be solved first before I support borrowing. Corruption has to go, maintenance culture has to become part of us and our tax laws have to be updated.

As for now, low risk approach is the best approach before a thief that replaced you ruin everything you've planned and worked for.