With the falling oil prices in the international market, Lagos State Governor, Akinwunmi Ambode said that it is currently impossible to run any state in Nigeria.
He threw his weight behind granting of 18 months moratorium to states in order for them to have more money to meet their obligations in the face of the economic crisis.
The governor spoke with State House correspondents after meeting with President Muhammadu Buhari at the Presidential Villa, Abuja.
He said: “There is nothing wrong in asking for moratorium. Lagos State has just restructured its bond programme. It is about financial intelligence.
“The states are not saying they are not going to pay back. We are saying that based on the present circumstances, we can hold down principal payments and just take interest.
“Maybe for a while, let us also ask for moratorium to be able to pay principal at a future date. The issue is that you cannot operate a state in the manner in which the financial in flows are coming now. It is very difficult. We have to be realistic.
“It is like any other organization. If the inflows are not up to what the fixed costs are like, you have to do something drastic and that is what we are all doing.
“I am an accountant first before being a politician. You need to see the numbers. The numbers do not tally.
“It has nothing to do with the status you are finding yourself now. It is about the past record, it is about the present status and it is about taking drastic decisions to be able to allow the state’s to stay afloat,” he stated.
On the purpose of his visit to the President, he said that he came to thank him on behalf of Lagos State and the people of the state on the outcome of his visit to China.
He said: “You will recall that Lagos State is a major beneficiary of that visit. The Lagos metro rail project of about $2.5bn is being signed up by Nigeria and the President.
“The Lagos-Kano rail project and other projects are also there. There are many benefits coming to Lagos State. That is why it is important to come and thank him personally,” he said.
He also noted that people will always oppose government policies and programmes just as they criticized the President’s visit to China.
“What is important is about the majority of people who are going to benefit from it.
“For Lagos, we cannot do any other thing than to say thank you,” he added