Lagos, FCT, Delta owe domestic creditors N683.16bn

Lagos, FCT, Delta owe domestic creditors N683.16bn
DG Debt Management Office Patience Oniha

Lagos and Delta states and the Federal Capital Territory Administration are the most exposed to domestic creditors, statistics obtained from the Debt Management Office have shown.

The statistics contained in the 2016 Annual Report of the DMO showed that the combined domestic debts of the two states and the FCTA stood at N683.16bn as of the end of September 2016.

The DMO had helped the states to build their capacity in managing and reporting their debt commitments to various bodies, including banks and foreign institutions. They are also required to report their debts to the DMO on a quarterly basis.

Analysis of the debt data shows that nine states of the federation owe domestic creditors a total of N1.5tn. This represents 53.15 per cent of the country’s total subnational domestic debt of N2.82tn as of September 2016.

The states are Lagos, Delta, Osun, Akwa Ibom, Rivers, Bayelsa, Cross River, and Oyo, as well as the FCT.

On an individual basis, Lagos State owed N265.77bn to domestic creditors as of September 2016. This represents 9.41 per cent of the combined domestic debt of the states and the FCT.

Lagos was followed by Delta State, with a domestic debt of N237.79bn, representing 8.42 per cent of the subnational domestic debt.

In the third position was the FCTA, with a domestic debt status of N179.55bn, representing 6.36 per cent of the country’s subnational domestic debt.

Osun followed with a domestic debt status of N149.09bn, representing 5.28 per cent; while Akwa Ibom State had a domestic debt of N147.58bn, representing 5.23 per cent of the country’s subnational domestic debt.

Rivers State had a total of N142.42bn in domestic debts. This represents 5.05 per cent of the total subnational domestic debt. Bayelsa, on the other hand, had a domestic debt status of N130.81bn, representing 4.63 per cent of the nation’s subnational domestic debt.

Cross River had a domestic debt of N127.38bn, representing 4.51 per cent of the subnational domestic debt; while Oyo had N119.97bn, representing 4.25 per cent.

Thus, among the six states that make up the South-South geopolitical zone, only Edo, with a domestic debt of N45.03bn, was not among the states with more than N100bn. Our correspondent, however, reported that Edo was among the states with the heaviest burden in foreign debt exposure.

Anambra State had the least exposure to domestic creditors. As of September 2016, its domestic debt stood at N4.04bn, representing 0.14 per cent of the country’s subnational domestic debt.

Other states with low exposure to local creditors include Yobe, with N13.72bn; Jigawa, N19.01bn; Katsina, N22.11bn; Sokoto, N22.85bn; Borno, N25.7bn; and Ebonyi, N27.98bn.

Domestic debts in the country attract high interest charges. The Federal Government recently sought an alternative domestic debt route by raising N100bn from the Islamic sukuk bond for road infrastructure development. The bond does not attract interest charges, but bond holders are entitled to a share of the profit.


Copyright MMS Plus.                
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from KINGS COMMUNICATIONS LIMITED

Check Also

Rice Price Skyrockets As Local Production Declines

Smuggled rice Rice consumption in the country has been on a steady rise, beyond the …

Leave a Reply

Your email address will not be published. Required fields are marked *

× Get News Alert