Different State governors have denied taking fresh loans since their inauguration in May, 2023. States like Kaduna, Katsina, Kebbi have come out to deny claims of fresh loans, noting instead that they have been repaying loans borrowed by governors before them. The stand of the governors may not be unconnected to the fact that they were largely sworn in May, 2023, after the country’s general elections.
WikkiTimes takes a look at the data at the centre of controversy.
Data shows that between June and December 2023, the following states domestic debt increased; Kogi (N28 billion), Kwara (N2 billion), Niger (N18 billion), Plateau (N16 billion), Zamfara (N14 billion), Adamawa (N11 billion), Bauchi (N13 billion), Benue (N1 billion), Borno (N5 billion), Katsina (N37 billion).
The Debt portfolio of the following Northern states reduced between June and December 2023. The state’s debt was reduced by the following; Sokoto (N2 billion), Taraba (N2 billion), Gombe (N36 billion), Jigawa (N1 billion), Kaduna (N85 billion).
Examining Foreign Debt Portfolio of States between June and December 2023
Data shows that the external debt portfolio of the following states increased between June and December , 2023.
Kwara ($1 million), Niger ($2 million), Plateau ($1 million), Sokoto ($1 million), Taraba ($2 million), Zamfara ($1 million).
Other states such as Adamawa also registered an increase of ($2.1 million), Bauchi ($17 million), Borno ($ 2million), Gombe ($14 million), Kaduna ($13 million), Kano ($6 million).
The following states recorded a decrease in their external debt portfolio within this period. Kogi ($3 million), Nasarawa ($1 million) and Jigawa ($1 million).
What does the Budget Performance Report of States Say About Increase in Their Public Debt Portfolio?
WikkiTimes did a sample of Budget performance reports of states for the last quarter of 2023, to check if they borrowed money (domestic and external). As of the last quarter, the current governors were already in charge of the state’s affairs.
Data from the budget performance report of Gombe state shows that the sum of N4.035 billion was borrowed from international sources in the last quarter 2024.
In Kaduna,international loans and borrowing receipts for the last quarter of 2023, stood at N20.364 billion.
Kano state international loans/borrowings receipt for the last quarter of 2023 stood at N7.309 billion.
In Bauchi, Domestic borrowings stood at N35 billion, while international loans and borrowings stood at N1.4 billion.
Kogi state domestic debt borrowings as of the last quarter stood at N30 billion while international loans portfolio stood at N816.404 million.
Verdict
Based on available data, states recorded an increase in their domestic/external debt between June and December, 2023. Some states also recorded deductions.
Budget performance data also show that as of last quarter of 2023, where the current governors were administrative heads of states, some states were recorded to have received fresh loans. What is however unclear is who initiated the loans proceedings.
The claim on states having an increase in their debt portfolio is valid, however the uncertain claim is who initiated the loan processes.
