Jigawa, Kebbi, Kastina, Nasarawa and Ondo are the five states with the lowest domestic debts as of the second quarter of 2023, a BusinessDay analysis has shown.
According to the latest data from the National Bureau of Statistics (NBS), Jigawa owed N43.1 billion in domestic debt; Kebbi, N60.9 billion; Katsina, N62.4 billion; Nassarawa, N71.1 billion; and Ondo, N74 billion.
“Lagos State recorded the highest domestic debt in Q2 with N996.4 billion, followed by Delta with N465.4 billion,” it said.
Others are Ogun (N293.2 billion), Rivers (N225.5 billion) and Imo (N220.8 billion).
The NBS added that Lagos recorded the highest external debt with $1.26 billion, followed by Kaduna ($569.4 million). “Borno state had the least external debt with $18.8 million, followed by Taraba with $21.9 million.”
Total public debt in Africa’s biggest economy rose by 102 percent to N87.4 trillion in Q2, the highest in at least 11 years, from N42.8 trillion in the same period of last year.
Read also: AMCON recovers 70% of bad debts
The percent increase is higher than 20.6 percent increase for the previous year. It also increased on a quarter-on-quarter basis, by 75.3 percent to N49.9 trillion.
Total external debt stood at N33.4 trillion, while total domestic debt was N54.1 trillion, according to the statistical agency.
“The share of external debt to total public debt was 38.1 percent in Q2 2023, while the share of domestic debt to total public debt was 61.9 percent,” it said.
“The major addition to the public debt stock was the inclusion of the N22.7 trillion securitised FGN’s Ways and Means Advances,” Debt Management Office said in a statement.
The Ways and Means Advances is a loan facility through which the CBN finances the shortfalls in the government’s budget.
The country’s total public debt stock comprises total domestic and external debts of the Federal Government of Nigeria, the 36 states, and the Federal Capital Territory.
The statement noted that other additions to the debt stock were new borrowings by the Federal Government and the sub-nationals from local and external sources.
“The reforms already introduced by the present administration and those that may emerge from the recommendations of the Fiscal Reform and Tax Policies Committee are expected to impact debt strategy and improve debt sustainability,” it said.
