Lagos, Ogun, Rivers lead as States’ domestic debts hit N4.46trn

Lagos, Ogun, and Rivers States topped the list of states in Nigeria with highest domestic debts as of December 2021, jointly owning a sum of N1.12 trillion in domestic debts, which accounted for 25.1% of the total state debts.

According to data from the Debt Management Office, domestic debts owed by the 36 states of the federation including the federal capital increased by N272.23 billion in 2021 to stand at N4.46 trillion compared to N4.18 trillion recorded as of the previous year.

A further look into the data, also shows that Lagos, Ogun, and Imo States recorded the highest year-on-year increase in terms of the domestic debt profile, with Lagos State owing a sum of N658.96 billion, and Ogun State with domestic debt of N232.62 billion. On the flip side, Delta and Rivers State recorded the highest decline in debt profile.

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In terms of geopolitical zones, Southwestern states led the chart with an aggregate domestic debt of N1.34 trillion, accounting for over 30% of the total debt as of the end of the review year. The South-South region followed with a domestic debt profile of N988.1 billion.

On the flip side, the Southeastern part recorded the lowest domestic debts as of December 2021, with N467.45 billion, closely followed by the Northwest region with N495.19 billion. Notably, of all the geopolitical zones in the country, only the South-South region recorded a decline in its domestic debt profile.

As at the end of 2021, Lagos State’s domestic debt stood at N658.96 billion, accounting for 14.8% of the total domestic debt owed by the 36 states including Abuja, and over 49% of the entire southwest domestic debt.

The domestic debt of the economic epicenter of Nigeria saw its domestic debt increase by N150.18 billion compared to N508.78 billion as of the previous year.

Ogun State owes a total domestic debt of N232.62 billion as of December 2021, which accounts for 5.2% of the total states’ debt profile. Its domestic debt rose by N79.13 billion in 2021 from N153.49 billion recorded as of the previous year.

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Rivers State, a major oil-producing state in the country, stands third on the list with a total domestic debt of N225.51 billion, representing a decline of N41.43 billion compared to N266.94 billion recorded as of the previous year.

Akwa Ibom State’s domestic debt stood at N214.61 billion as of December 2021, accounting for 4.8% of the total states’ domestic debt obligations. However, its debt was reduced by N16.19 billion in 2021 compared to N230.81 billion recorded as of the end of 2020.

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Others on the list include Imo (N205.19 billion), Cross River (N159.82 billion), Delta (N154.61 billion), Bayelsa (N154.61 billion), Plateau (N150.49 billion), and Oyo State with a domestic debt stock of N142.56 billion).