Politics
NO IMPACT ON LAGOS RATINGS OVER VISIONSCAPE MISSED PAYMENTS – FITCH RATINGS
N
…Says State’s B+ Status Stable, Unaffected
A global credit rating agency, Fitch Ratings, has affirmed the positive economic ratings of Lagos State despite the missed contracted services payment by Visionscape Sanitation Solutions as a result of halting of the waste management agreement.
In a statement dated March 28, 2019, (See the full Fitch Statement Attached Below) Fitch said the State’s B+/(AA+(ngn)/ ratings remained stable and unaffected by the default of the SPV Municipality Waste Management Contractors Limited (MWMCL) led by Visionscape occasioned by the halt of the said contract and the subsequent resolution of the State House of Assembly.
The SPV is a private consortium led by Visionscape Sanitation Solutions (Visionscape), a company mandated to manage Lagos’ waste collection and disposal.
Early this March, the SPV is reported to have missed the semi-annual principal and coupon payments for about N800million on the N4.85billion tranche under MWMCL’s N50billion medium term note programme.
The bond was issued by MWMCL reportedly to raise funds to purchase recycling trucks and equipment, linking debt service to the proceeds coming from Lagos for the implementation of the waste recycling contract.
Some market participants had deemed MWMCL’s default to imply also the default of Lagos, given the state’s irrevocable standing payment order (ISPO) whereby a stream of its own internally generated revenue was remitted to the SPV account for debt servicing.
But the agency, in its opinion, said the ISPO, and similar arrangements in other countries, is a mechanism enhancing the predictability of payment flows from an administration, potentially enabling it to address liquidity stress by prioritizing the payment of certain liabilities.
However, such a mechanism normally falls short of the senior, unconditional, and irrevocable features qualifying it as a solvency guarantee, i.e. a guarantee of timely repayment of long-term financial liabilities, such as bonds and loans, over extended periods.
“In short, the ISPO is seen as a commitment to set aside resources for debt service, making it a risk-mitigating factor in case of liquidity stress by an administration rather than a credit enhancement.
“Fitch does not rate the defaulted bond and believes that it would not have been able to rate the state’s commitment towards Visionscape – underpinning the bond debt servicing – under its Public-Sector Counterparty Obligations in PPP Transactions Criteria. Fitch does not rate commercial liabilities, i. e. those arising from service provision, such as waste fees/utility bills,” the agency said.
Giving further details, Fitch said when the payments of commercial nature are recurrent amid the need to procure the service of an asset otherwise purchasable/funded via borrowing (i.e. hospital, energy, motorway, public transport infrastructure), Fitch tests the rateability of the commitment and cautions that the IGR of the grantor, Lagos State in this case, does not address the default risk on commercial, or quasi-debt arrangements.
The agency added that since the commitment underlying the MWMCL bond may meet the rateability tests under its PPP counterparty obligation criteria as Lagos lacks the control of the asset, and that it is the grantee (Visionscape) that appears to have the option to put to the state the waste recycling trucks in case of contract termination, rather than the state having the control that will enable it to operate them at the end of the PPP arrangement if it so chooses, then the State Government could not be held liable.
“Lagos reportedly committed itself to pay for a service but those payments were discontinued in 2018 once the waste collection halted and the State’s House of Assembly issued a subsequent resolution.
“Under Fitch’s criteria, Lagos’ ratings are not impacted because the defaulted debt is not Lagos’ direct debt, as well as because its multi-annual commitment towards Visionscape is unlikely to qualify as a PPP counterparty obligation. This would make the credit quality of the bond and its issuer detached from that of Lagos,” Fitch said in the statement.
Politics
Gov. Dauda Lawal commissions projects in Anka LGA, Commits to Sustainable Development
Gov. Dauda Lawal commissions projects in Anka LGA, Commits to Sustainable Development
The Executive Governor of Zamfara State, Dr. Dauda Lawal, has reiterated his administration’s steadfast commitment to guiding Zamfara State towards sustainable development by inaugurating and initiating a series of pivotal projects in the Anka Local Government Area.
Among the key undertakings announced are the comprehensive reconstruction and modernization of the Emir of Anka’s palace, signaling a revitalization of traditional leadership; the initiation of work on the crucial Anka–Abbare Road, which is expected to significantly improve connectivity; and the construction of a new Local Government Secretariat.
Additionally, the projects encompass the establishment of dedicated offices for the Hisbah Commission and the Community Protection Guards, alongside the reconstruction of the Safe School in Anka, emphasizing the administration’s focus on enhancing educational infrastructure.
During the commissioning event, Governor Lawal highlighted that these projects are a fulfillment of commitments made during his campaign, aimed at transforming the local landscape by improving infrastructure, stimulating economic growth, bolstering public service efficiency, and enhancing the capacities of security agencies. He called for a collective effort from the community to ensure proper maintenance of these facilities, underscoring the shared responsibility in preserving public assets.
Governor Lawal shared that similar projects have also been inaugurated in Tsafe, with plans for upcoming projects in Kaura Namoda, Moriki, Bungudu, Bukkuyum, and Zurmi, all expected to be completed and inaugurated by the year’s end. This ambitious timeline reflects the administration’s urgency in addressing the development needs of various regions within the state.
In his remarks, the governor urged residents and local traditional institutions to collaborate closely in maintaining the newly commissioned structures and supporting the overarching objectives of his administration. “I stand here in Anka today to honor our commitments to the people of Anka Local Government and all of Zamfara State. The official opening of the new palace for the ‘Sarkin Zamfaran Anka’ and the Zamfara State Council of Chiefs is a significant milestone that wraps up today’s agenda,” he stated.
Governor Lawal emphasized the strategic importance of the Anka–Abbare Road, describing it as a critical artery that will not only enhance access to remote areas but also stimulate economic activities and generate multiplier effects throughout the local economy. He articulated the necessity of providing a conducive work environment for civil servants, affirming that the new local government secretariat and dedicated offices will significantly contribute to strengthening law and order within the state.
“Education is the cornerstone of any thriving society. Our focused initiatives are oriented towards fostering a safe, secure, and supportive environment for our students. I am also proud to announce the completion and commissioning of the reconstructed SAFE School Anka today,” he remarked, reaffirming the administration’s dedication to education.
The governor further noted that the commissioning of the Emir’s Palace serves to restore the historical prominence of traditional institutions, which he regards as pivotal custodians of the region’s culture and heritage. He underlined the administration’s awareness of the invaluable role that these institutions play in fostering the state’s growth and emphasized the necessity of aligning development projects with cultural values.
In conclusion, the governor mentioned that after the successful commissioning in Anka and Tsafe, future projects in Kaura Namoda and Moriki will follow suit, while those in Bungudu, Bukkuyum, and Zurmi remain on track for completion and official commissioning before the year concludes.
news
GEN CHRISTOPHER GWABIN MUSA SUPPORT INITIATIVE HAILS GOVERNOR UBA SANI’S APPOINTMENT AS RENEWED HOPE AMBASSADOR
GEN CHRISTOPHER GWABIN MUSA SUPPORT INITIATIVE HAILS GOVERNOR UBA SANI’S APPOINTMENT AS RENEWED HOPE AMBASSADOR
The Gen Christopher Gwabin Musa Support Initiative (GCGMSI) has extended its warm congratulations to His Excellency, Mallam Uba Sani, the Executive Governor of Kaduna State, following his recent appointment as a Renewed Hope Ambassador and Deputy Director-General for Party Outreach, Engagement, and Mobilisation by the All Progressives Congress (APC).
This felicitation was formally conveyed in a statement signed by the Initiative’s Convener, Ibrahim Dahiru Danfulani, Sadaukin Garkuwan Keffi/Betara Biu, and disseminated to the press.
The statement highlighted that the Grand Patron of the GCGMSI, His Excellency General Christopher Gwabin Musa, OFR, Minister of Defence of the Federal Republic of Nigeria, received the news of the appointment with great pride but without surprise. According to the statement, General Musa expressed unwavering confidence in Governor Uba Sani’s proven capability and salient leadership qualities, affirming that the Governor is eminently equipped to deliver on every task entrusted to him.
The Grand Patron further extended profound appreciation to the President and Commander-in-Chief of the Armed Forces, His Excellency Asiwaju Bola Ahmed Tinubu, GCFR, for recognising and finding Governor Uba Sani worthy of this critical national assignment. The appointment, which takes effect immediately, was made by the President in his capacity as the leader of the APC, citing the Governor’s exceptional organisational abilities and strategic acumen.
In his new role, Governor Sani is tasked with working in close collaboration with the Director-General of the Renewed Hope Ambassadors and the party hierarchy, including the National Chairman of the APC. His primary mandate is to ensure harmony, inclusiveness, and strategic coordination across all levels of the party’s mobilization and engagement architecture, a vital function for advancing the political agenda.
Demonstrating its commitment to national service and effective governance, the GCGMSI, under the direct directive of its Grand Patron, General Musa, has officially mobilised its formidable structure. The Initiative has pledged the full deployment of its extensive network, seasoned personnel, and robust operational framework to assist and support Governor Uba Sani in the successful execution of his new responsibilities.
The Gen Christopher Gwabin Musa Support Initiative, renowned for its disciplined organisation, widespread grassroots penetration, and capacity for large-scale civic mobilisation, stands ready as a pivotal force. This move underscores the GCGMSI’s pivotal role as a key support system for national development initiatives and its unwavering dedication to fostering unity and progress under the Renewed Hope agenda.
Politics
Oyo 2027: Ajadi Says PDP Will Retain Power
Oyo 2027: Ajadi Says PDP Will Retain Power
…..Tasks PMS To Remain United, Peaceful
A leading People’s Democratic Party (PDP) governorship aspirant in Oyo State, Ambassador Olufemi Ajadi Oguntoyinbo, has urged the people of Oyo State to remain steadfast, saying they will continue to enjoy good governance because the PDP will produce the next governor in the 2027 general elections.
Ajadi, who made this known while addressing transport unions under the Park Management System (PMS) at their headquarters, New Garage, Ibadan, on Tuesday, urged the park managers to remain united and maintain the love and peace currently prevalent among them.
According to him, “My advice to the Park Managers and the commercial drivers in Oyo State is that they should continue the love and peaceful attitudes. They should remain united. They should not ‘scattelegs’.
“Don’t let anybody deceive you, remain steadfast. Let me assure you that our party, the PDP, will produce the next governor come 2027,” Ajadi said.
He said he came to the PMS headquarters to meet with transporters and park managers to inform them of his aspiration to serve the people of Oyo State as governor come 2027.
“Today I joined my people, the park managers in Oyo State, to familiarize myself with them and inform them of my intention to serve the people of Oyo State as the next governor by the Grace of God.”
On the plans for the transporters, Ajadi said he first wants to change the look of the City Cabs, which will be done in collaboration with the Park Management System.
He also plans to increase the number of Mass Transit buses and make them available in all locations of the State.
He said the Mass Transit buses will operate in partnership with the Park Managers.
Ajadi, who commended Governor Makinde on the newly established bus terminals in the State, said his government will ensure adequate usage of the facilities.age of the facilities.
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