Five States Lead Subnational Debts In Q2 2020

Data from the Debt Management Office has revealed that Lagos, Rivers and Akwa Ibom are the three most indebted states within the country at the end of the second quarter of 2021.

The domestic debts owed by state governments and the Federal Capital Territory Administration stood at N4.12tn, representing 18.94 percent of the country’s domestic debt stock of N21.75tn as of Q2 2021, up from N20.64tn in the previous quarter.

Lagos and four oil-producing states – Rivers, Akwa Ibom, Delta and Cross River – emerged as the top five debtors, with a combined domestic debt stock of about N1.36tn.

The five states account for 33.01 per cent of the total domestic debt owed by the subnational governments in the country as of June 30, 2021.

Top five states indebted in Q2

Lagos owed N533.81bn as of Q2 2021, accounting for 12.86 percent of subnational governments’ total domestic debt. Akwa Ibom’s domestic debt stood at N242.27bn, representing 5.83 per cent of the total domestic debts owed by subnational governments as of Q2 2021.

Rivers had a domestic debt stock of N213.17bn, which represents 5.10 per cent of the country’s subnational domestic debt stock. Delta accounts for 5.10 per cent of the total subnational domestic debt as it owed N205.91bn as of June 30, 2021.

Cross River has a domestic debt stock of N161.55bn. This represents 3.88 per cent of the subnational domestic debt stock.

Breakdown of other states

Other states with high domestic debts include Ogun, with a debt of N155.57bn; Bayelsa, N150.61bn; Imo, N149.51bn; Osun, N133.36bn; and Plateau, N132.47bn.

Others are Kano, with a domestic debt stock of N127.65bn; Benue, N126.93bn; Taraba, N99.89bn; Oyo, N91.98bn; and Adamawa, N90.37bn.

Jigawa, with a debt of N32.60bn; Ebonyi, N43.39bn; Anambra, N55.01bn; Katsina, N55.34bn; and Nasarawa, N56.25bn.

Others are Yobe, N60.23bn; Kwara, N63.66; Enugu, N68.72bn; Niger, N79.25bn; and Sokoto, N80.81bn.

The DMO had disclosed that Nigeria's total public debt stock rose from N33.11tn as of March 31, 2021 to N35.47tn as of June 30, 2021, representing an increase of N2.36tn or 7.13 per cent increase within the three-month period.

The total external debt stock rose from N12.47tn as of March 31 to N13.71tn as of June 30, indicating an increase of N1.24tn or 9.94 per cent.

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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