- 6:03 pm August 5, 2016
Domestic Debts by Zone in Charts
The domestic debt profile of Nigerian states are on the uprise as revenue from Oil, Value Added Tax receipts, and Company’s profitability falls. The economic circle, foreign exchange challenges, and an increasingly weaker economy is affecting negatively the ability of government to grow revenue significantly. States are therefore resulting to massive borrowing.
Plateau State has the highest volume of debt in the North-central zone, coming from N20 billion in 2011 to N96 billion in 2015 while Niger State has the lowest in the year 2015, closing with N21.5 billion despite standing at N16.9 billion in 2011.
Kogi State undeterred by accumulating the highest amount of domestic debts in the zone at 2011 ( N34 billion), worked its way out of it by 2012, experienced a significant dip in 2013 and remained at N10.3 billion in 2014 – inauspiciously, the debt stock managed to rise to over N42 billion in 2015.
In the North-east, as at 2015, Bauchi state has the highest domestic debt level of N57.6 billion, Gombe and Adamawa state trails at N53.4 billion and N47.2 billion respectively.
Katsina state should be commended for being able to keep its debt stock at such a small figure within 2011- 2014, however, the debt figures unveiled in 2015 showed a leap of 1859% from N586.6 million to N11.4 billion in 2015. Out of all the states in the North West zone, Kano remains the most indebted in 2015 at over N65 billion.
As seen in the chart, Imo state’s domestic debt leapt by 148%, escalating from N28.9 billion to N71.7 billion in 2015 putting it as the most indebted state in the zone.
In the South-south, Delta state holds the highest liability in the area, with a looming national debt profile of N320.6 billion in 2015, the state’s domestic debt stock rose from 2011 level of N90.8 billion to this amount, showing a jump of 51% from the 2014 figures.
In the South West zone, Ekiti, Ondo, Osun and Oyo states’ domestic debt drastically grew in 2015 while Lagos and Ondo State government made efforts to reduce the pressure in the same year. Osun state’s debt increased by 285 % just within 2014 to 2015, the biggest jump in the zone.
The state domestic debt stock is inclusive of the bailout received from Federal Government in 2015.
For states who reduced their domestic debt stocks in 2015, it is important to ask how they met the obligations in comparison to other states.
Considering the current economic woes, it is no news that the debt stock for these states might increase should caution not be taken.
How will states get out of the domestic debt that has added a whopping N848 billion from what it totalled in 2014?