Lagos owes highest debt, followed by Ogun, Rivers, Akwa Ibom
By Jeph Ajobaju, Chief Copy Editor
Lagos makes N45 billion monthly in internally generated revenue (IGR), an impressive 7,400 per cent leap in 22 years from 1999, more than the IGR of over 30 states combined, yet the Centre of Excellence owes the most among its peers.
Lagos, Ogun, and Rivers mounted the leaderboard of domestic debt in 2021, jointly owing N1.12 trillion or 25.1 per cent of total N4.46 trillion state debt.
Domestic debt owed by the 36 states and the Federal Capital Territory (FCT) jumped from N4.18 trillion in 2020 to N4.46 trillion in 2021, rising by N272.23 billion, according to Debt Management Office (DMO) figures.
Lagos, Ogun, and Imo recorded the highest year-on-year (YoY) debt increase with Lagos amassing N658.96 billion, Ogun N232.62 billion, and Imo N205.19 billion.
Delta and Rivers had the lowest rate of debit increase.
Debt by zone
The South West led the charts with an aggregate N1.34 trillion, accounting for over 30 per cent of total debt in 2021, followed by the South South (N988.1 billion).
The South East recorded the lowest debt with N467.45 billion, followed by the North West (N495.19 billion).
Only the South South had a decline in domestic debt.
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Debt by state
Below is the list of states which owed the most domestic debt in 2021, as compiled from DMO data by Nairametrics:
Lagos – N658.96 billion
Lagos amassed N658.96 billion, accounting for 14.8 per cent of the N4.46 trillion owed by the 36 states and the FCT, as well as over 49 per cent of total debt owed by the six South West states.
Its domestic debt increased by N150.18 billion above N508.78 billion in 2020.
Ogun – N232.62 billion
Ogun owed N232.62 billion or 5.2 per cent of the total.
Its domestic debt rose by N79.13 billion from N153.49 billion in 2020.
Rivers – N225.51 billion
Rivers is third on the list with N225.51 billion debt, but had a decline of N41.43 billion against N266.94 billion in 2020.
Its domestic debt accounted for 5.1 per cent of the total.
Akwa – N214.61 billion
Akwa Ibom had N214.61 billion debt ot 4.8 per cent of the total. However, its debt reduced by N16.19 billion versus N230.81 billion in 2020.
Debt of other states
- Imo – N205.19 billion
- Cross River – N159.82 billion
- Delta – N154.61 billion
- Bayelsa – N154.61 billion
- Plateau – N150.49 billion
- Oyo – N142.56 billion
Federal debt
Nigeria spent N2.1 trillion on domestic debt service in 2021, increasing by 10.8 per dent compared with 2020, the highest amount on record, according to Nairametrics.
Most of the payments were incurred on interest on federal government bonds at N1.66 trillion.
Despite increasing debt and debt servicing fees, federal revenue has not improved to the extent of funding its budget.
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