Lagos and Rivers lead as subnational domestic debt hits 4.2 billion naira

the domestic debt owed by state governments and the Federal Capital Territory administration reached 4.2 billion naira at the end of the third quarter of 2021, compared to 4.12 billion naira in the second quarter.

Lagos, Rivers and Akwa Ibom are the three most indebted countries, according to the latest data from the Debt Management Office.

The debt of 4.2 billion naira represents 23.04% of the country’s outstanding domestic debt of 18.23 billion naira in the third quarter of 2021, compared to 21.75 billion naira in the previous quarter.

Lagos, Ogun and three oil-producing states – Rivers, Akwa Ibom and Delta – have become the top five debtors, with a combined domestic debt outstanding of around 1.39 billion naira.

The five states accounted for 33.1% of the total domestic debt owed by subnational governments as of September 30, 2021.

Lagos owed 532.12 billion naira in the third quarter of 2021; Akwa Ibom, 234.85 billion naira; Rivers, 226.35 billion naira; Delta, N207.17 billion and Ogun N192.42 billion.

Rivers State’s domestic debt stock figure was as of June 30, 2021, according to the DMO.

Other states with high domestic debt include Cross River, with debt of 160.69 billion naira; Bayelsa, 145.8 billion naira; Imo, N151.31bn; Osun, 132.64 billion naira; Plateau, 145.86 billion naira; Kano, 102.35 billion naira; Bénoué, 128.35 billion naira; Oyo, 93.26 billion naira; and Enugu, 69.17 billion naira.

The DMO, in a statement released on Wednesday, revealed that Nigeria’s public debt stood at 38.01 billion naira or $ 92.63 billion in the third quarter of 2021.

He said the total outstanding debt increased by 2.54 billion naira in three months, from 35.47 billion naira as of June 30 to 38 billion naira as of September 30.

He said: “The increase of 2.540 billion naira from the corresponding figure of 35.465 billion naira at the end of the second quarter of 2021 is largely explained by the 4 billion dollars of Eurobonds issued by the government in September 2021.

“The $ 4 billion Eurobond issuance has brought significant benefits to the economy by increasing the level of Nigeria’s external reserves, thus supporting the exchange rate of the naira and providing the necessary capital to enable the government federal government funding various projects in the budget.

“The triple tranche euro-bond of $ 4 billion, issued in September 2021, was intended to implement the new external borrowing of $ 6.18 billion in the 2021 finance law.”

The DMO also highlighted the need for the federal government to increase revenue momentum to reduce the country’s debt profile and reduce new loans.

The House of Representatives on Tuesday approved foreign borrowing totaling $ 5.8 billion and a $ 10 million grant to the federal government under the proposed 2018-2020 (rolling) external borrowing plan. n ° 3.

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