- The Debt Management Office’s report shows that Lagos, Delta, and Rivers owe 38 per cent of states’ domestic debt
- Other states like Jigawa, Kebbi, and Nasarawa had the lowest domestic debt profile as of September 2024
- The domestic debts of some states declined while those of others surged between June and September 2024
The latest sub-national report by the Debt Management Office (DMO) shows that Lagos, Delta, and Rivers states collectively account for 38 per cent of the total domestic debt stock of states and the Federal Capital Territory (FCT).
The report disclosed that the domestic debt of the 36 states and the FCT stood at N4.21 trillion as of September 30, decreasing from N4.27 trillion recorded as of June 30, 2024.
On a quarter-on-quarter basis, the domestic debt of states and the FCT declined by 1.27 per cent or N54.37 billion.
Recall that Nigeria’s total public debt, which comprises external and domestic obligations, increased to N142.3 trillion as of September 30, 2024, a 5.97 per cent (N8.02 trillion) increase compared to N134.3 trillion recorded in June 2024.
In dollar terms, Nigeria’s total public debt declined by 2.70 per cent, from $91.35 billion in June to $88.89 billion in September 2024, according to data from the DMO.
Details of domestic debt owed by Lagos, Delta, and Rivers
The DMO report shows that Lagos State retained its position as the highest debtor with a domestic debt stock of N853.43 billion, representing 20 per cent of the total sub-national domestic debt.
On a quarter-on-quarter basis, Lagos' domestic debt stock declined by N32.56 billion (3.67 per cent) compared to the N885.99 billion recorded in June 2024.
Delta State’s domestic debt stock increased to N342.53 billion in September 2024, making it the second-highest debtor.
The figure shows a N37.99 billion (12.47 per cent) increase from its June 2024 figure of N304.54 billion.
Rivers State came third, contributing nine per cent to the total 36 states’ domestic debt stock with N389.20 billion.
The DMO noted that the domestic debt figure for Rivers State remained unchanged between June and September 2024, as the data for Rivers was only updated up to June 30, 2024.
Other states with high domestic debt profile
The DMO report also shows that Akwa Ibom State’s domestic debt stock declined by N6.87 billion (or 5.17 per cent) to N126.00 billion as of September 2024 from the June 30, 2024 figures.
Cross River’s domestic debt stock dropped by N22.08 billion (14.20 per cent) to N133.41 billion as of September 30, 2024.
States with low domestic debt stock
According to the DMO, Jigawa State retained its position as the state with the lowest domestic debt stock, as it recorded N1.26 billion in September 2024, a N552 million (30.38 per cent) reduction from the N1.82 billion owed as of June 2024.
Following closely is Kebbi State, which had a debt stock of N15.34 billion, a N118 million (0.76 per cent) decline compared to its June figure of N15.46 billion.
Nasarawa State’s domestic debt stock stood at N25.16 billion in September 2024, increasing by N1.21 billion (5.07 per cent) from N23.94 billion recorded in June 2024.
Kaduna State had a domestic debt stock of N26.61 trillion as of September 2024, a decline of N1.98 billion (6.93 per cent) from its June figure of N28.60 billion.
Also, Ondo State recorded a domestic debt stock of N13.99 billion as of September 2024, representing a reduction of N1.11 billion (7.35 per cent) from its June figure of N15.10 billion.
States with quarter-on-quarter domestic debt increase
The report shows that while some states reduced their domestic debt levels on a quarter-on-quarter basis, others borrowed more to increase their debt stock, raising concerns about fiscal sustainability.
According to the data, Delta State added N37.99 billion to its domestic debt stock, recording the highest increase in absolute terms among the top debtors during the quarter.
Also, Adamawa State’s domestic debt increased by N19.65 billion (19.08 per cent) from N102.99 billion in June to N122.63 billion in September 2024.
The third-highest state domestic debt increase was recorded by Enugu State, as its debt stock surged by N31.10 billion (32.07 per cent) from N96.98 billion in June to N128.07 billion in September 2024.
FG plans to borrow N31 trillion as national debt stock climbs to N165 trillion
Meanwhile, TheRadar earlier reported that the Federal Government planned to borrow an additional N31.24 trillion to fund expenditures within the next three years.
The new borrowing will increase Nigeria’s debt stock from N134.3 trillion as of June 2024 to N165.54 trillion by 2027.
