A WikkiTimes review of data by the debt management office has shown that Northern Nigeria States owe over two trillion naira domestically and another $1.5 billion as of the end of December, 2023.
Benue Leads the Debt Pack Domestically
Further study shows that Benue state recorded the highest domestic debt with N187 billion as of the end of 2023.
Plateau recorded the sum of N173.9 billion while Bauchi’s portfolio stood at N160.8 billion.
Kaduna Records Highest External Debt at $587 Million
Further review shows that externally, Kaduna owes the highest debt with the sum of $587 million.
Bauchi is the second indebted state with the sum of $187 million owed as of the end of December 2023.
The lowest external debt is that of Borno at $20 million.
Public Debt and Public Debt Charges Dilemma
The accumulation of debts by states come with payment of charges on these figure annually. This simply means that the state services debts from time to time, a development that impacts its available revenue on annual basis for development.
In Kogi, the public debt charges figure for 2023 stood at N17.6 billion. In Niger State, public debt gulped the sum of N14.58 billion, while Kwara state expended the sum of N12.7 billion for public debt charges.
In Nasarawa, sum of N5.247 billion was paid out for public debt charges.
In 2023, Plateau spent N51.3 billion as public debt charges.
A data review by WikkiTimes also shows that Bauchi state spent N24 billion on public debt charges in 2023. Of this amount, foreign interest/discount on short term borrowings gulped N5.102 billion while domestic borrowings interest took N19.390 billion.
Experts have called for caution in the extent to which states borrow money, expressing worry that this may hamper development in the states, given that monies needed for developmental projects may end up being spent on debt servicing.
Sokoto to Commence Formal Sector Deduction to Improve Healthcare
