Lagos, Kaduna and Cross River states are top on the list of the states of the federation that are indebted to foreign institutions.


According to the list, obtained from the Debt Management Office in Abuja on Thursday, the three states owe $612.64m (91.90bn) out of a total $1.84bn foreign debt of the 36 states of the federation, including the Federal Capital Territory.


The debt of the three states represents 33.26 per cent of the foreign debt owed by the 36 states and the FCT. The three states’ foreign debt liability also represents 13.51 per cent of the nation’s total foreign debt.


Lagos State, according to the breakdown, is the most indebted state of the federation. With a total foreign debt of $369.20m (N55.38bn), Lagos holds about 20 per cent of the country’s sub-national foreign debt stock.


The state’s foreign debt stock also represents 8.14 per cent of the country’s total foreign debt stock, according to the list.


Details of the facilities showed that the foreign debt liability of Lagos State had been ballooned by a World Bank facility obtained with the support of the Federal Government for its urban renewal programme about four years ago.


Kaduna State followed on the list, with a liability of $143.45m (N21.52bn), while Cross River had $99.99m (N15bn).


Other states in the top league include Oyo, $88.16m; Ogun, $73.72m; Katsina, $72.72m; Osun, 59.81m; and Akwa Ibom, $59.48m.


The least indebted states were Borno, $13.58m; Delta, $16.6m; Anambra, $17.9m; Taraba, $19.07m; and Benue, $23.66m.


The 36 states and the FCT account for 40.62 per cent of the nation’s total foreign debt liability.


Some states have also resorted to internal borrowing through the capital and money markets to shore up what they receive from the federation account. But the DMO has not yet captured the total internal indebtedness of the states.


Worried by the possibility of sub-national debts growing beyond a sustainable level, the debt office recently issued guidelines for borrowing by the 36 states of the federation and the FCT.


One of such requirements is obtaining approval from their legislative arms of government. The Office has also helped some states to establish their debt management units.


The Director-General, DMO, Dr. Abraham Nwankwo, recently put Nigeria’s total debt stock, as at December 31, 2010, at $34.6bn (about N5.19tn).


Out of this, a total of N4.5tn or 86.71 per cent was raised from within the shores of the nation.


Much of the domestic debt was incurred through the Federal Government of Nigeria Bonds with maturity dates ranging from three to 20 years, issued by DMO on a monthly basis.


Meanwhile, activities of the agency for the month of January showed that it raised a total of N60bn for the Federal Government through the issuance of FGN bonds.


Through the FGN bond with a maturity date of February 19, 2013, it raised a total of N30bn. The bond has a 10.4 per cent rate.


Through another bond with a maturity date of April 23, 2015, it also raised a total of N30bn. This bond, with a longer maturity period, attracts an interest rate of 11.13 per cent.

http://www.punchng.com/Articl.aspx?theartic=Art20110211044590

Thats hell of a debt. It high time Fashola starts remitting the debts.

Ibro Yaya:

Thats hell of a debt. It high time Fashola starts remitting the debts.

Remit or borrow more?
Talk about cosmetic achievement not minding the resources available for looting and development.

Go to Anambra and see how a lean resource is utilized with efficiency.

Obiagu1:

Remit or borrow more?

There is always payback time, and when it comes the effects are not always good on the administration on ground.
Check what happened to plateau state. Development was almost in a halt because the administrations where busy serving debts that were borrowed by other regimes. The government even found it difficult to pay civil servants.

Let Fashola keep borrowing. Debt na debt,it must surely be paid with interest.

Nobody cares. They can always run back to their states while Lagosians hold the bag.

At least we are seeing the development on ground unlike the poverty development party, 12 years into power yet no electricity.

Why won't it be when Fashola'e godfather is holding the state by the jugular by cornering billions of naira of state funds under fraudulent circumstatances

nobaga:

Nobody cares. They can always run back to their states while Lagosians hold the bag.

What are you saying? You mean they should be responsible for the conversion of public funds into private investments by Tinubu and his boy, Raji?

seanet02:

At least we are seeing the development on ground unlike the poverty development party, 12 years into power yet no electricity.

We also saw Massive developments in Plateau state then.That was when  terminus was built and the state electrification programme .

I dey laugh

excanny:

What are you saying? You mean they should be responsible for the conversion of public funds into private investments by Tinubu and his boy, Raji?

If any other state is drained by the way Tinubu and his boyboy Fashola drain Lagos, there will be mass revolt. But what the hell there are more ara Eko than omo Eko and Tinubu loot to spend money in their states. So why care?

Those saying at least they can see what Fashola is doing in Lagos because he is a one eye man are simply naive and do not wish Nigeria well.

Hashed out pretty thoroughly here:

https://www.nairaland.com/nigeria/topic-603211.0.html

I wish the mods would merge some of these redundant threads.