Lagos owes N658.96b, leading debtor states

Lagos has the highest debt, followed by Ogun, Rivers, Akwa Ibom

By Jeph Ajobaju, Editor-in-Chief

Lagos generates 45 billion naira per month in internally generated revenue (IGR), an impressive jump of 7,400% in 22 years since 1999, more than the IGR of more than 30 states combined, but the Center of Excellence must more among his peers.

Lagos, Ogun and Rivers moved up the domestic debt rankings in 2021, jointly holding N1.12 trillion, or 25.1% of the total public debt of N4.46 trillion.

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Domestic debt owed by the 36 states and the Federal Capital Territory (FCT) rose from 4.18 trillion naira in 2020 to 4.46 trillion naira in 2021, increasing by 272.23 trillion naira, according to the Debt Management Office (DMO) figures.

Lagos, Ogun and Imo recorded the highest increase in debt year-on-year (YoY), with Lagos amassing N658.96 billion, Ogun N232.62 billion and Imo N205.19 billion .

Delta and Rivers recorded the lowest rate of increase in flow.

Debt by area

The South West topped the rankings with a total of N1.34 trillion, accounting for over 30% of total debt in 2021, followed by the South South (N988.1 billion).

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The South East recorded the lowest debt at N467.45 billion, followed by the North West (N495.19 billion).

Only the South-South has experienced a decline in its domestic debt.

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Debt by State

Below is the list of states that owed the most domestic debt in 2021, as compiled from DMO data by Nairametry:

Lagos – N658.96 billion

Lagos amassed 658.96 billion naira, or 14.8% of the 4.46 trillion naira owed by the 36 states and the FCT, as well as more than 49% of the total debt owed by the six South West states .

Its domestic debt increased by N150.18 billion above N508.78 billion in 2020.

Ogun – 232.62 billion naira

Ogun owed N232.62 billion, or 5.2% of the total.

Its domestic debt increased by N79.13 billion from N153.49 billion in 2020.

Rivers – N225.51 billion

Rivers is third on the list with a debt of 225.51 billion naira but saw a decline of 41.43 billion naira from 266.94 billion naira in 2020.

Its domestic debt represented 5.1% of the total.

Akwa – N214.61 billion

Akwa Ibom had a debt of 214.61 billion naira, or 4.8% of the total. However, its debt was reduced by N16.19 billion from 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 2.1 trillion naira on servicing domestic debt in 2021, up 10.8% from 2020, the highest amount ever recorded, according to Nairametry.

Most of the payments were incurred on interest from the N1.66 trillion federal government bonds.

Despite rising debt and debt service charges, federal revenues have not improved to the point of funding its budget.