WikkiTimes review has shown that four North Central states spent N72 billion on debt servicing in 2023.
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According to data review Niger State spent N14.5 billion on public debt charges in 2023.
In Plateau, as of third quarter of the year, the state spent N29.065 billion for public debt transactions in 2023.
Also in Kogi, the sum of N17.662 billion was spent on public debt transactions in 2023.
Kwara state spent N12.7 billion on public debt charges.
More on Public Debt Charges, Less on Infrastructure
Further review shows that states spent more on public debt charges than what it spent in total for key ministries.
For instance ministry of water resources spent the sum of N417 million in total in Plateau state for the year 2023, while the ministry of health spent N4.7 billion for same year.
Ministry of education( secondary education) had an actual budget performance of N56.3 million.
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All of the amounts above are not up to what the state spent on public debt transactions (N29.065 billion) in the year.
There have been concerns about how states have high debt profiles, WikkiTimes earlier reported how the state stands in terms of indebtedness.
Experts have noted that states should diversify their sources of income to ensure that they rely less on debts.
WikkiTimes earlier reported that Banks have also been feeding states with funding.
For Access Bank, as of half year 2022, the loan to the government stood at N415 billion , representing 7.7% of the total loan it issued out for that period of time.
As of the half year of 2023, the loans disbursed by Zenith bank to the government stood at N731 billion, representing 13.6% of the total loan by the bank as of that period.
Government took 10.2% of the loan disbursed by the United bank for Africa as of half year 2023, with a total N470 billion.
Fiscal mismanagement has also been blamed for the debt profile of states .
In 2023, SERAP asked the World Bank to suspend loans to Nigerian states citing diversion of funds and how the monies gotten as loans by these states are spent.
While it has been noted that the Nigerian fiscal responsibility act permits loans for capital needs, reports have it that Nigerian states borrow to pay salaries.
States have struggled with revenue generation , relying on loans to fund their budget.
