Lagos Leads With N797.3bn as Subnational Debt Hits N5.28trn

Data from the Debt Management Office (DMO) has confirmed Lagos state as the most indebted subnational authority in the country. Of the N5.281 trillion owed by the states in the country, the State is topping the list with about N797. 304 billion as at June 30, 2022.

Following Nigeria’s commercial and economic capital in the debt hierarchy are Delta with N378.87billion , Ogun with N241.78billion and Rivers State N225. 505 billion respectively.

Other heavily indebted state according  to a report by Persecond News are : Imo with N210. 394 billion; Akwa Ibom, N203. 951 billion; Cross River, N 176. 086 billion; Oyo, N159. 906 billion; Ogun, N150. 529 billion; Bayelsa N 150. 430 billion; Plateau N144. 608 billion; Benue N143 . 547 billion, Bauchi, N129. 207 billion; Kano N125. 186 billion; and Gombe N 123. 608 billion.The report listed Jigawa as the least debt of N 45.135 billion, followed by Ebonyi and Kebbi with N59. 171 billion and N60. 417 billion, respectively.

The rest states and their indebtedness are: Ondo, N62. 270 billion; Kastina N66. 675 billion; Anambra N72. 429 billion; Nassarawa, N72. 965 billion; Kaduna N78. 194 billion; Sokoto N89. 920 billion; Taraba N 90. 807 billion; and Yobe with N96. 624 billion.

Abia N107. 612 billion,  Borno N102. 496 billion; Edo, N112. 118 billion; Ekiti, 119. 543 billion; Enugu, N89. 887 billion; Kano, N125. 186 billion; Kogi N 90. 538 billion; Kwara N 110. 512; and Niger with n 80. 919 billion, while the Federal Capital Territory owed N75. 783 billion.

The DMO explained that the debts stocks of Rivers and Kastina were as at September 2021 and December 31 2021, respectively, raising concerns that it could be more as at June 2022.

The agency said that the nation’s Public debt rose to N42.84 trillion (USD103.31 billion) as at June 30, 2022.

According to the data from DMO, the figure represents N1.24 trillion increase above the debt stock as at the end of the first quarter of the year, which was N41.60 trillion ($200.07 billion).

The Total External Debt Stock was USD40.06 billion (N16.61 trillion) as at June 30, 2022, which was about the same level as the figure for March 31, 2022, which stood at USD39.96 billion (N16.61 trillion).

“Over fifty-eight percent (58 per cent) of the External Debt Stock are concessional and semi-concessional loans from multilateral lenders such as the World Bank, International Monetary Fund, Afrexim and African Development Bank and bilateral lenders including Germany, China, Japan, India and France.

“The Total Domestic Debt Stock as at June 30, 2022, was N26.23 trillion (USD63.24 billion) due to New Borrowings by the FGN to part-finance the deficit in the 2022 Appropriation (Repeal and Enactment) Act, as well as New Borrowings by State Governments and the FCT.

“The Total Public Debt to GDP as at June 30, 2022, was 23.06 per cent compared to the ratio of 23.27 per cent as at March 30, 2022, and remains within Nigeria’s self-imposed limit of 40 per cent.

“While the FGN continues to implement revenue-generating initiatives in the non-oil sector and block leakages in the oil sector, Debt Service-to-Revenue Ratio remains high,” the DMO stated.