States pay N21.62b for external debt servicing in Q1 2022
By Jeph Ajobaju, Chief Copy Editor
Lagos came up for the highest amount among the 36 states from whose accounts N21.62 billion was deducted for external debt servicing in the first quarter of 2022 (Q1 2022), an increase of 31.5 per cent from N16.44 billion in Q1 2021.
Lagos had the highest deduction (N7.27 billion), followed by Kaduna (N2.26 billion), and Cross River (N1.36 billion), according to Federal Account Allocation Committee (FAAC) report released by the National Bureau of Statistics (NBS).
A total N2.18 trillion federal allocation was shared among the three tiers of government and various revenue generating agencies in Q1 2022.
State governments received N590.45 billion as gross allocation, the federal government N720.21 billion, councils N436.37 billion, and 13 per cent derivation for oil states N145.4 billion.
Top five states with debt service deduction in Q1 2022
Lagos – N7.27 billion
A sum of N7.27 billion was deducted from Lagos allocation, representing 33.6 per cent of the total sum paid by the 36 six states.
Its external debt deduction rose 27.93 per cent against N5.69 billion in Q1 2021.
Lagos, Nigeria’s economic hub, owes $1.33 billion in foreign debt as of December 2021, the highest among states.
Kaduna – N2.26 billion
Kaduna had N2.26 billion deducted, accounting for 10.5 per cent of the total, increasing 47.22 per cent year-on-year (YoY) versus N1.54 billion in Q1 2021.
Its external debt stood at $595.12 million in 202.
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Cross – N1.36 billion
Cross River paid N1.36 billion or 6.3 per cent of the total debt servicing by all states.
Its deductions increased 80.6 per cent from N754.97 million in Q1 2021.
Its external debt reached $279.71 million in 2021, according to NBS data, per Nairametrics.
Oyo – N1.24 billion
A total N1.24 billion was deducted from the allocation of Oyo, a 12.4 per cent rise on N1.09 billion in Q1 2021.
Its external debt amounted to $85.27 million in 2021.
Rivers – N800.58 million
Rivers saw its allocation from the federal purse reduced by N800.58 million, an increase of 14.71 per cent on N697.92 million in Q1 2021.
Its total external debt amounted to $147.78 million in 2021.
Other states
Bauchi – N576.41 million
Osun – N567.77 million
Ogun – N547.23 million
Ekiti – N491.88 million
Katsina – N481.48 million