States’ public debt stock hits N1.8 trillion

• Lagos, Bayelsa, C’River top list of borrowers
• Borno, Yobe least indebted
• Oyo, Jigawa and FCT liabilities unknown

WITH a huge debt portfolio of N1.86 trillion, the country’s 36 states and the Federal Capital Territory (FCT) are in dire financial straits in their bid to ensure development. The Debt Management Office (DMO), which in a report put the total liabilities at N1.86 trillion as at the end of June last year, said that this figure was up from the N1.42 trillion level of December 2011.

A breakdown of the figure indicates that local or domestic debt obligations account for N1.186 trillion with the balance being the foreign debt liabilities. Contractors’ liabilities top the chart on the debt table followed closely by commercial banks’ loans, bonds, pension and gratuity and government-to-government debt in that order.

The DMO’s report said: “The total public debt of the 36 states rose from N1.42 trillion as at December 31, 2011 to N1.86 trillion by June 2012. The marginal increase of about 3.32 per cent was as a result of slight increases in both the external and domestic debt stocks. As in 2011, domestic debt dominated the total public debt portfolio of the 36 states of the federation in June amounting for over 77 per cent of the total as it did in the previous year.”

The entire records of Oyo and Jigawa states’ liabilities and those of the Federal Capital Territory (FCT) Administration are the only data missing out in the report of the exercise begun some five years ago and concluded December last year by the DMO.

http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=114090:states-public-debt-stock-hits-n18-trillion&catid=1:national&Itemid=559

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