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NO IMPACT ON LAGOS RATINGS OVER VISIONSCAPE MISSED PAYMENTS – FITCH RATINGS

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Akinwunmi Ambode - Your Excellency, I'm not happy with you

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…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.

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Captain Buratai Joins Borno Assembly Race, Sparks Youth Mobilisation in Biu

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Captain Buratai Joins Borno Assembly Race, Sparks Youth Mobilisation in Biu

 

Pilot Muhammad Tukur Buratai (MTTB), son of former Chief of Army Staff, Tukur Yusuf Buratai, has intensified political activities in Borno State after purchasing the nomination form of the All Progressives Congress to contest for a seat in the Borno State House of Assembly.

General Buratai Backs Son’s Political Ambition, Calls For Greater Youth Inclusion In Governance

The young aviator is seeking to represent Biu Constituency, a move many political observers describe as a bold transition from professional service into active grassroots politics.

 

 

Supporters of the aspirant insist his emergence represents a blend of youthfulness, exposure and leadership capacity needed in the state legislature at a time when demands for greater youth representation in governance continue to gain momentum across the country.

 

Unlike conventional political entrants, allies of captain Buratai argue that his aviation background has equipped him with discipline, technical knowledge, calm decision-making and strategic coordination skills considered valuable in public leadership.

 

 

Political watchers within Biu also believe his candidacy could energise younger voters and strengthen grassroots participation within the APC ahead of the party primaries.

 

His growing acceptance, according to supporters, is also linked to his accessibility, community engagement and understanding of the developmental concerns facing youths and rural communities within the constituency.

 

The aspirant recently met with his father to seek his blessing ahead of the political contest, a development seen by many as a symbolic endorsement of his ambition and readiness for public service.

 

 

Stakeholders within the constituency say his entry into the race has already altered political calculations in the area, with consultations and mobilisation intensifying across several wards.

 

Supporters further maintain that beyond family name recognition, the young aspirant possesses the educational exposure, leadership orientation and communication skills required to effectively represent the interests of the people at the legislative level.

 

 

As political activities gather momentum ahead of the elections, many within Biu believe his emergence could usher in a new generation of leadership focused on youth empowerment, education, economic opportunities and community development.

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Ajadi Congratulates Bimbo Adekanmbi, Vows Supports to 2027 Governorship Project

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Ajadi Congratulates Bimbo Adekanmbi, Vows Supports to 2027 Governorship Project

 

 

Prominent political figures within the Team Seyi Makinde political structure in Oyo State, Ambassador Olufemi Ajadi Oguntoyinbo and Hon. Adedeji Stanley Olajide, popularly known as Odidiomo, have congratulated Chief Bimbo Adekanmbi following his emergence as the consensus governorship candidate of the political movement ahead of the 2027 general elections.

 

The duo, who also emerged as consensus senatorial candidates for Oyo Central and Oyo South Senatorial Districts, respectively, pledged total support for Adekanmbi’s governorship ambition, while assuring residents of Oyo State of inclusive governance and continuity of developmental policies associated with Governor Seyi Makinde’s administration.

 

“I throw my full support behind Chief Bimbo Adekanmbi as the consensus governorship candidate chosen by our political leaders through a unified process,” Ajadi said.

 

He added, “His emergence reflects unity, consultation, and the collective resolve of our political family, and we are fully committed to delivering victory in 2027.”

 

According to him, the endorsement of Adekanmbi was based on competence, loyalty, administrative experience, and the need to sustain ongoing developmental strides in the state.

 

Also reacting to the development, Hon. Stanley Odidiomo expressed appreciation to stakeholders for the confidence reposed in the candidates selected through consensus.

 

He assured party loyalists and supporters that the candidates would work collectively to deepen democratic dividends across the state.

 

“This is not about individual ambition alone; it is about protecting the future of Oyo State and consolidating on the achievements already recorded. We are united, and we are prepared to serve the people with sincerity and fairness,” Odidiomo said.

 

Sources close to the meeting disclosed that discussions centered on political unity, grassroots mobilization, and sustaining the developmental momentum associated with Governor Makinde’s administration.

 

The Deputy Governor of Oyo State, Abdulraheem Adebayo Lawal, was also said to have witnessed the strategic meeting alongside other influential stakeholders within the political structure.

 

Lawal reportedly congratulated Adekanmbi and the senatorial candidates while expressing optimism that the political family would remain united ahead of the next general elections.

 

Political observers in the state believe the consensus arrangement may reshape the political landscape ahead of the 2027 governorship contest, especially with increasing alignments and consultations among major political actors across the state.

 

Adekanmbi’s emergence is already generating conversations within political circles, with supporters describing it as an attempt to maintain continuity, stability, and the governance philosophy championed by Governor Makinde over the years.

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CityBoy Movement Denounces ‘False Blasphemy Claim’ Against Seyi Tinubu

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Why Seyi Tinubu is not your usual silver spoon

CityBoy Movement Denounces ‘False Blasphemy Claim’ Against Seyi Tinubu

 

 

The CityBoy Movement has dismissed as false and malicious a viral social media post alleging that its patron, Barr. Seyi Tinubu, made blasphemous remarks concerning God and the 2027 presidential election.

 

In a statement issued on Monday by the group’s Deputy Director-General for Communication and Public Affairs, O’tega Ogra, the movement described the publication as “deliberately inflammatory” and aimed at creating religious tension in the country.

 

The group said the statement, allegedly authored by one “Albaabu Abudulahi,” falsely attributed comments to Tinubu which he never made “at any time, in any place, through any channel, or under any circumstance whatsoever.”

 

According to the statement, the allegation was “entirely false, malicious in intent, reckless in circulation and dangerous in consequence.”

 

The movement maintained that Seyi Tinubu is a man of faith who believes that all authority comes from God alone and would never insult or diminish the supremacy of God or Allah.

“He has never insulted, mocked, questioned or diminished the supremacy of Almighty God or Allah, and will never do so,” the statement read.

The group further accused unnamed individuals of attempting to damage Tinubu’s image and provoke unnecessary religious controversy ahead of the 2027 general elections.

While reaffirming Tinubu’s support for the re-election bid of President Bola Ahmed Tinubu in 2027, the CityBoy Movement stressed that all political ambitions and public service efforts remain subject to “the will and guidance of Almighty God.”

The organisation urged Nigerians to disregard the circulating claims, describing them as a calculated attempt to mislead the public and sow division along religious lines.

It also called on media organisations, digital publishers and social media users to verify information before sharing materials capable of threatening national unity and peaceful coexistence.

The statement reiterated the movement’s commitment to democratic engagement, responsible public conduct and respect for all faiths.

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