Nigeria’s 36 states’ including the Federal Capital Territory (FCT), increased their domestic debts by N198 billion in three months.
The information is from the data released by the Debt Management Office on the sub-national debt for the second quarter of 2024.
According to the DMO data, the states’ total domestic debt and the FCT increased by five per cent from N4.068 trillion in March this year to N4.267 trillion in June 2024.
According to analysis, debt levels varied across the states, with some showing significant increases while others showed marginal changes or reductions.
While some states, such as Lagos, Delta, and Ogun, reduced their debt burdens, others recorded sharp spikes.
Benue State has a total domestic stock of N116.88 billion in the second quarter of 2023, showing a minimal increase from N116.73 billion in Q1 of 2024, representing a difference of N144.24 million
The oil-producing state reduced its domestic debt stock from N142.93 billion in the review period to N132.87 billion in Q2 of 2024.
The figure marks a significant decline of seven per cent, with a decrease of N10.06 billion, suggesting a deliberate effort by the state to manage its debt profile amid high expenses.
The state experienced a spike in its domestic borrowings, rising from N86.07 billion in Q1 to N146.29 billion in Q2 2024, representing a 70% increase, amounting to an additional N60.22 billion in debt.
The increase may be due to its infrastructural and developmental drive, as it plays a critical role in Nigeria’s hydroelectric power and agricultural investments.
The state’s domestic debt rose from N108.39 billion in the review period to N147.23 billion in the second quarter, showing a 36% spike and an additional N38.84 billion in borrowings.
The figure shows that the state has invested heavily in infrastructure and social welfare initiatives.
Cross River’s domestic borrowings declined from N156.17 billion in the second quarter to N155.49 billion in Q2 2024, representing a decline of N682.14 million.
The state debt stock highlights its efforts to maintain fiscal discipline despite its tourism and industrialisation projects.
The state reduced its domestic debt from N163.06 billion in Q1 2024 to N159.19 billion in Q2 2024, a two-per cent decrease and an N3.87 billion reduction.
The declines underscore the state’s fiscal frugality amid its ongoing developmental projects.
The state reduced its domestic debt from N221.22 billion in the first quarter of 2024 to N211.12 billion in Q2 2024.
The figure represents five per cent, amounting to N10.09 billion in reduced debt following its strategic debt reduction, which aligns with its focus on attracting investment and expanding its industrial base.
It recorded one of the most significant debt reductions, cutting its domestic borrowings from N334.90 billion in Q1 2024 to N304.54 billion in Q2 2024.
