Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission, Mr Elias Mbam, yesterday disclosed that the 36 States in the country have a total external debt stock of 2.165billion dollars while the federal government owed 3.501bn dollars. He further disclosed that the domestic debt stock of the federal government was N5.622trn.
Mbam made these revelations at a joint hearing of the Senate Committees on National Planning, Economic Affairs and Poverty Alleviation, Finance, States and Local Governments and Appropriation, which is looking into the looming danger of bankruptcy in the States. Mbam who expressed concern over the huge domestic debt profile of the States with various local banks in short term borrowing, added that they were substantially exposed to the capital market. He therefore asked the National Assembly to limit the total exposure of States to external and domestic borrowing to not more than 20 per cent of their monthly allocations from the Federation Account.