The Federal Government, the 36 states and the Federal Capital Territory (FCT) will commit N67.2 billion to servicing their external debt obligations for a six-month period (July- December) 2016, New Telegraph has gathered.
The Debt Management Office (DMO’s) latest figure on external debt of federal and state governments as of June 30, 2016, according to a document on debt service breakdown sighted by this newspaper, stood at $11.26 billion or N3.19 trillion. It was $10.32 billion or N2.03 trillion in July last year.
External debts represent portion of debt owed the multilateral bodies such as World Bank group (IDA, IBRD), Africa Development Bank (AfDB) and other bilateral bodies such as China Exim Bank, France AFB, Japan Jica, India Exim Bank; German and Euro bonds.
The debt service obligation document computed by DMO – a copy believed to have been sent to each state and the FCT, showed that of N67.2 billion estimated debt service, federal government has the highest debt service obligation in sum of N50.6 billion, followed by Lagos, N4.9 billion; Cross River, N1.3 billion and Kaduna, N 1.050 billion.
The breakdown revealed that in July, Lagos State serviced its debt with N377.2 million, N904.6 million in August, same amount for September, October, November and December obligations. Kaduna State’s debt service obligation in July was N124.4 million, N185.2 million in August, while same amount was committed from September to December.
Cross River’s debt service obligation in July was N166.4 million, N244.7 million in August, while same amount was committed from September to December.
The Federal Government serviced its debt with N5.087 billion in July, N2.9 billion in August and will repeat the same figure till December. Other states and their cumulative debt service obligation for six months (July – December) are as follows: Abia N156.8 million, Adamawa N222.1 million, Akwa Ibom N590.9 million, Anambra N260.9 million, Bauchi N379.1 million, Bayelsa N170.1 million and Benue N124.6 million.
Also included are Borno, N100.2million; Delta, N143.2million; Ebonyi, N200.1 million; Edo, N416.8 million; Ekiti, N268.2 million; Enugu, N295.6 million; Gombe, N283.3 million and Imo, N274.4 million.
Others states and their debt obligation schedule till December 2016 are: Jigawa, N163.1 million; Kano, N302.5 million; Katsina, N615.4 million; Kebbi, N218.4 million; Kogi, 145.2 million; Kwara, N165.7 million; Nassarawa, N171.1 million and Niger N231.5 million.
Others are Ogun, 447.1 million; Ondo, N287.8 million; Osun, N580.2 million; Oyo, N737.7 million; Plateau, N119.4million; Rivers, N255.2 million; Sokoto, N207 million; Taraba, N93.06 million; Yobe, N240.1 million; Zamfara, N132.9 million and FCT N218.2 million.
The sub total amount for states and FCT as debt service obligation for the six months grossed N16.5 billion. Five states – Lagos, Kaduna, Cross River, Ogun and Edo – were ranked the most heavily indebted states with each having over $100 million external loans.
While Lagos State is reputed of having the financial muscle to repay its $1.087 billion credit facilities because of its high Internally Generated Revenue (IGR), same cannot be said of other high ranking indebted states.
The continuous drop in monthly revenue available for sharing to the three tiers of government, occasioned by drop both in oil output and crude oil price, has weakened the financial capacity of most states, with many unable to discharge their financial obligations to their workers and contractors.
The deduction of debts service obligation by the DMO at source from the share of revenue due to indebted states, leave states with little funds to embark on developmental projects with most grappling with payment of salaries. Data on external debt profile of states show Lagos State has the highest debt profile of $1.087 billion, followed by Kaduna State with a total of $234 million. Cross River State followed closely with an external debt profile of $131.469 million.
Other states with relatively large external debt are Edo, $123 million; Ogun, $109 million; Bauchi, $87 million; Enugu, $62 million; Katsina, $78 million; Osun, $67 million and Oyo State, $72 million. DMO’s latest statistics on the country’s total debt (external and domestic) as of June 2016, put Nigeria’s debt at N16.29 trillion.
As of June 2015, the country’s total debt stood at N12.12 trillion, an indication that within the one-year period (July 2015 to June 2016), the country’s total debt rose by N4.17 trillion, or 34.41 per cent. A breakdown of the country’s debt profile shows that external debt by the federal and state governments stood at $11.26 billion or N3.19trillion as of June 30, 2016.
It was $10.32 billion or N2.03 trillion by July last year. The DMO figure was arrived at using the Central Bank of Nigeria (CBN’s) official exchange rates of N283 to $1 as of June 30, 2016, and N197 as at December 2015, to get the naira equivalent of the foreign debt status. The Federal Government’s domestic debt stood at N10.61 trillion as of June this year, up from N8.4 trillion a year ago, indicating an increase of N2.21 trillion or 26.31 per cent.
The domestic debt of the states stood at N2.5 trillion at the end of June this year, whereas it was N1.69 trillion in July 2015. This means that within a period of one year, the domestic debt of the states rose by N810 billion, an increase of 47.93 per cent. The Nigerian Treasury Bills accounted for N2.9 trillion or 27.36 per cent of the Federal Government’s domestic debt profile.