The debt status of states in Nigeria have been revealed.


Most of the states’ debts exceeded 50 per cent of their annual revenues.

The debt profiles of about 18 states exceed their gross and net revenues by more than 200 per cent.


Lagos, Osun and Cross River states record over 480 per cent debt to gross revenue.

The Fiscal Responsibility Commission, FRC, stated this in its 2016 Annual Report obtained by Punch in Abuja on Monday.

It said that the debt may have increased by 2017 since there were no effort by the states to clear them.


FRC said the development was contrary to the guidelines of the Debt Management Office on debt sustainability.

The guidelines said that the debt status of each state should not exceed 50 per cent of the statutory revenue in the previous 12 months.

The report stated, “In the light of the DMO’s guidelines on the Debt Management Framework, specifically, sections 222 to 273 of the Investment and Securities Act, 2007 pertaining to debt sustainability, according to the guidelines, the debt to income ratio of states should not exceed 50 per cent of the statutory revenue for the preceding 12 months.”

An analysis presented in the FRC report, however, showed that most states flouted the directive.

In fact, the debt status of many states exceeded the debt to revenue ratio by more than 100 per cent. The analysis was based on the debt profile of the states as of December 31, 2016.

The states with the highest debt to gross revenue ratios were Lagos (670.42 per cent), Osun (539.25 per cent), Cross River (486.49 per cent), Plateau (342.01 per cent), Oyo (339.56 per cent), Ekiti (339.34 per cent), Ogun (329.47 per cent), Kaduna (297.26 per cent) and Imo (292.82 per cent).

Others were Edo (270.8 per cent), Adamawa (261.96 per cent), Delta (259.63 per cent), Bauchi (250.75 per cent), Nasarawa (250.36 per cent), Kogi (221.92 per cent), Enugu (207.49 per cent), Zamfara (204.91 per cent), and Kano (202.61 per cent).

The debt to net revenue ratio of the states put some of the states in even more precarious situations. The debt to net revenue of Lagos, for instance, is 930.96 per cent, while that of Cross River is 940.64 per cent.

The only states whose debt did not exceed the 50 per cent ratio by more than 100 per cent are Anambra, Borno, Jigawa, Kebbi, Sokoto, Yobe and the Federal Capital Territory.

The debt to revenue ratio is very important in debt analysis as it can give an indication of the capacity of the debtor to service and repay the debt.

However, the FRC noted that it should not be concluded that a state had over-borrowed because its debt to revenue ratio was more than 50 per cent.

The report stated, “It should be noted that the fact that some states exceeded the threshold of 50 per cent of their total revenue is not an indication that they over-borrowed as the debt limits of the governments in the federation are yet to be set.

“Furthermore, only total revenue is used for the foregoing analysis as comprehensive data on the states’ Internally Generated Revenue were not available. In any case, the IGR on the average is not more than eight per cent of the states’ total revenue except for Lagos State. In essence, the non-inclusion of the IGR may not distort the result of the analysis.

“Therefore, there is a need for each of these states to work towards bringing their respective consolidated debts within the 50 per cent threshold of their total revenue in order to guarantee a general public debt sustainability in the country.”
https://www.google.com.ng/amp/dailypost.ng/2018/03/20/debt-status-36-states-nigeria-revealed-see-details/amp/

And they say there should be continuity , continuity of suffering in osun state? what did Aregbesola do with this domestic loans? someone that doesn't even pay salary. not to talk of foreign loans. AREGBESOLA has about $500m in his foreign account. Aregbesola is a criminal. he wants to use Oyetola to cover up his evil deeds . UNDER AREGBESOLA OSUN STATE DEBT IS #138BN (DOMESTIC ) AND ($97M) - FOREIGN

Thanks BROS LALASTICLALA. Now they say we should vote for APC again? We heard that he even borrowed #10bn in the name of each of the 30 local government in osun state .

Imagine these discouraging stastitics Failure of governance @ all levels.Abeg restructure or disintegrate this contraption called Nigeria.It's just a failed state.

OK dat settles it....

Anambra not upto 50%

Seriously apga as a party has conscience.

Anambra isn't doing bad shaa, am just proud of that state, obodo dike

[s]

chiefolododo:
And they say there should be continuity , continuity of suffering in osun state? what did Aregbesola do with this domestic loans? someone that doesn't even pay salary. not to talk of foreign loans. AREGBESOLA has about $500m in his foreign account. Aregbesola is a criminal. he wants to use Oyetola to cover up his evil deeds . UNDER AREGBESOLA OSUN STATE DEBT IS #138BN (DOMESTIC ) AND ($97M) - FOREIGN

[/s]
You chose to ignore the allocation part as expected.
Say all the bullshit you want . We that live in osun know that Aregbesola is the best governor we ever had in this state and we shall vote massively for Adegboyega Oyetola on Saturday.
Sit down in your red mud potorpotor republic and continue to speculate

Some states should be sold.

Olohunjedalo:
[s][/s]
You chose to ignore the allocation part as expected.
Say all the bullshit you want . We that live in osun know that Aregbesola is the best governor we ever had in this state and we shall vote massively for Adegboyega Oyetola on Saturday.
Sit down in your red mud potorpotor republic and continue to speculate

Don't let me curse you, which allocation part? is it not deductions of loans that reduced the allocation to about 15bn naira in 6months? are other states like osun? is osun state the one collecting the least allocation? GOD WI JUDGE ALL OF US , WHEN YOU SEE THE TRUTH BUT YOU CANT SAY IT

Almost all the states are nothing without the monthly allocation, but it is disheartening to see Cross River state take the cake...very surprised I must admit.

Nice one Anambra..

Okay

Udantu:
The debt status of states in Nigeria have been revealed.


Most of the states’ debts exceeded 50 per cent of their annual revenues.

The debt profiles of about 18 states exceed their gross and net revenues by more than 200 per cent.


Lagos, Osun and Cross River states record over 480 per cent debt to gross revenue.

The Fiscal Responsibility Commission, FRC, stated this in its 2016 Annual Report obtained by Punch in Abuja on Monday.

It said that the debt may have increased by 2017 since there were no effort by the states to clear them.


FRC said the development was contrary to the guidelines of the Debt Management Office on debt sustainability.

The guidelines said that the debt status of each state should not exceed 50 per cent of the statutory revenue in the previous 12 months.

The report stated, “In the light of the DMO’s guidelines on the Debt Management Framework, specifically, sections 222 to 273 of the Investment and Securities Act, 2007 pertaining to debt sustainability, according to the guidelines, the debt to income ratio of states should not exceed 50 per cent of the statutory revenue for the preceding 12 months.”

An analysis presented in the FRC report, however, showed that most states flouted the directive.

In fact, the debt status of many states exceeded the debt to revenue ratio by more than 100 per cent. The analysis was based on the debt profile of the states as of December 31, 2016.

The states with the highest debt to gross revenue ratios were Lagos (670.42 per cent), Osun (539.25 per cent), Cross River (486.49 per cent), Plateau (342.01 per cent), Oyo (339.56 per cent), Ekiti (339.34 per cent), Ogun (329.47 per cent), Kaduna (297.26 per cent) and Imo (292.82 per cent).

Others were Edo (270.8 per cent), Adamawa (261.96 per cent), Delta (259.63 per cent), Bauchi (250.75 per cent), Nasarawa (250.36 per cent), Kogi (221.92 per cent), Enugu (207.49 per cent), Zamfara (204.91 per cent), and Kano (202.61 per cent).

The debt to net revenue ratio of the states put some of the states in even more precarious situations. The debt to net revenue of Lagos, for instance, is 930.96 per cent, while that of Cross River is 940.64 per cent.

The only states whose debt did not exceed the 50 per cent ratio by more than 100 per cent are Anambra, Borno, Jigawa, Kebbi, Sokoto, Yobe and the Federal Capital Territory.

The debt to revenue ratio is very important in debt analysis as it can give an indication of the capacity of the debtor to service and repay the debt.

However, the FRC noted that it should not be concluded that a state had over-borrowed because its debt to revenue ratio was more than 50 per cent.

The report stated, “It should be noted that the fact that some states exceeded the threshold of 50 per cent of their total revenue is not an indication that they over-borrowed as the debt limits of the governments in the federation are yet to be set.

“Furthermore, only total revenue is used for the foregoing analysis as comprehensive data on the states’ Internally Generated Revenue were not available. In any case, the IGR on the average is not more than eight per cent of the states’ total revenue except for Lagos State. In essence, the non-inclusion of the IGR may not distort the result of the analysis.

“Therefore, there is a need for each of these states to work towards bringing their respective consolidated debts within the 50 per cent threshold of their total revenue in order to guarantee a general public debt sustainability in the country.”
https://www.google.com.ng/amp/dailypost.ng/2018/03/20/debt-status-36-states-nigeria-revealed-see-details/amp/

g

chiefolododo:
Don't let me curse you, which allocation part? is it not deductions of loans that reduced the allocation to about 15bn naira in 6months? are other states like osun? is osun state the one collecting the least allocation? GOD WI JUDGE ALL OF US , WHEN YOU SED THE TRUTH BUT YOU CANT SAY IT

Please curse me na. I trust Mynd44 to do the needful to you.

chai our lagos and osun state top the table,even with ibos in our land.

What will now happy if they leave for their biafra.

Some states are fully aware that they lack the capacity to service such debt. Yet, they went ahead to borrow without having any means to pay it back, thereby plunging such state into an huge debt.
Besides, some states still lack meaningful development despite their borrowing.

Udantu:
The debt status of states in Nigeria have been revealed.


Most of the states’ debts exceeded 50 per cent of their annual revenues.

The debt profiles of about 18 states exceed their gross and net revenues by more than 200 per cent.


Lagos, Osun and Cross River states record over 480 per cent debt to gross revenue.

The Fiscal Responsibility Commission, FRC, stated this in its 2016 Annual Report obtained by Punch in Abuja on Monday.

It said that the debt may have increased by 2017 since there were no effort by the states to clear them.


FRC said the development was contrary to the guidelines of the Debt Management Office on debt sustainability.

The guidelines said that the debt status of each state should not exceed 50 per cent of the statutory revenue in the previous 12 months.

The report stated, “In the light of the DMO’s guidelines on the Debt Management Framework, specifically, sections 222 to 273 of the Investment and Securities Act, 2007 pertaining to debt sustainability, according to the guidelines, the debt to income ratio of states should not exceed 50 per cent of the statutory revenue for the preceding 12 months.”

An analysis presented in the FRC report, however, showed that most states flouted the directive.

In fact, the debt status of many states exceeded the debt to revenue ratio by more than 100 per cent. The analysis was based on the debt profile of the states as of December 31, 2016.

The states with the highest debt to gross revenue ratios were Lagos (670.42 per cent), Osun (539.25 per cent), Cross River (486.49 per cent), Plateau (342.01 per cent), Oyo (339.56 per cent), Ekiti (339.34 per cent), Ogun (329.47 per cent), Kaduna (297.26 per cent) and Imo (292.82 per cent).

Others were Edo (270.8 per cent), Adamawa (261.96 per cent), Delta (259.63 per cent), Bauchi (250.75 per cent), Nasarawa (250.36 per cent), Kogi (221.92 per cent), Enugu (207.49 per cent), Zamfara (204.91 per cent), and Kano (202.61 per cent).

The debt to net revenue ratio of the states put some of the states in even more precarious situations. The debt to net revenue of Lagos, for instance, is 930.96 per cent, while that of Cross River is 940.64 per cent.

The only states whose debt did not exceed the 50 per cent ratio by more than 100 per cent are Anambra, Borno, Jigawa, Kebbi, Sokoto, Yobe and the Federal Capital Territory.

The debt to revenue ratio is very important in debt analysis as it can give an indication of the capacity of the debtor to service and repay the debt.

However, the FRC noted that it should not be concluded that a state had over-borrowed because its debt to revenue ratio was more than 50 per cent.

The report stated, “It should be noted that the fact that some states exceeded the threshold of 50 per cent of their total revenue is not an indication that they over-borrowed as the debt limits of the governments in the federation are yet to be set.

“Furthermore, only total revenue is used for the foregoing analysis as comprehensive data on the states’ Internally Generated Revenue were not available. In any case, the IGR on the average is not more than eight per cent of the states’ total revenue except for Lagos State. In essence, the non-inclusion of the IGR may not distort the result of the analysis.

“Therefore, there is a need for each of these states to work towards bringing their respective consolidated debts within the 50 per cent threshold of their total revenue in order to guarantee a general public debt sustainability in the country.”
https://www.google.com.ng/amp/dailypost.ng/2018/03/20/debt-status-36-states-nigeria-revealed-see-details/amp/

delta own week me o

My region South West presently has poor fund managers as our Governors. I think FG needs to control excessive borrowing this is too much jare.

God help us all....

Ok

Olohunjedalo:

Please curse me na. I trust Mynd44 to do the needful to you.

to see evil and not to call it evil is evil itself. The rate of Moral decadence is high

OSUN? Nawao

Lol...who is giving Crosd river mind to dey borrow like this? Wetin dey wan use repay?

I ve come to check Osun and ain't disappointed...

I am proud of state, Anambra.

Anambra Amaka

Igbo Amaka

Ndi Igbo Amaka zi

Proudly 5%

chiefolododo:
to see evil and not to call it evil is evil itself. The rate of Moral decadence is high

Ok

osun