Business News
All states’ debts exceed revenue, contravene DMO rule- FRC
All the 36 states of the federation contravened the guidelines of the DMO by contracting debts exceeding their 12-month revenues.
All the 36 states of the federation contravened the guidelines of the Debt Management Office (DMO) by contracting debts exceeding their 12-month revenues. This was disclosed by the Fiscal Responsibility Commission (FRC).
According to the DMO guidelines on borrowing, no state should have outstanding loans that are more than 50% of their total revenues in the previous 12 months.
Director-General, DMO, Ms. Patience Oniha
According to data provided by the FRC in its 2018 Annual Report, all the states had debts more than 50% of their 12-month revenues.
The report showed that a state had debt to revenue ratios as high as 781% while some had lower debt to revenue ratios. However, the FRC argued that none of the states could be said to have overborrowed.
It hinged its argument on the fact that the President of the country that was supposed to set the borrowing limit for the states, according to the FRC Act, had not set any limit.
[READ MORE: President Buhari not to blame for increase in debt – DMO DG)
The states with the highest debt to revenue ratios
Nonetheless, going by the limit set by the foremost debt management agency in the country, no state is within the limit as they have all gone beyond the provided set order.
Lagos led the rest of the states. It had net revenue of N119.02 billion, with a total debt of N968.16 billion. This left the state with a debt to revenue ratio of 813.41%.
It also means that the state had gone beyond the DMO limit by 763.41%. Lagos was followed by Osun State with a debt to revenue ratio of 781.71%. While it had net revenue of N22.84 billion, its total public debt stood at N178.52 billion. This means that the state had a debt to revenue ratio of 781.71% and had gone beyond the limit set by the DMO by 731.71%.
Other top states with high debt to revenue ratios
- Other top states in terms of high debt to revenue ratios include Cross River, Ekiti, Ogun, Plateau, Edo, Bauchi, Adamawa, Kaduna, Nasarawa, Imo and Oyo States. The Federal Capital Territory Administration also made the list of top subnational governments with high debt to revenue ratio.
- Cross River State had net revenue of N36.95 billion, a debt of N225.91 billion, debt to revenue ratio of 611.31%. It, therefore, had gone beyond the limit by 561.31%.
- Ogun State had net revenue of N39.64 billion, a debt of N130.42 billion and a debt to revenue ratio of 328.97%. The state, therefore, had passed the limit set by the DMO by 278.97%.
- For Plateau State, the revenue stood at N43.89 billion while the debt stood at N109.23 billion. The debt to revenue ratio stood at 248.9% while it had gone beyond the limit by 198.9%.
- Edo had net revenue of N69.17 billion, total debt of N171.63 billion and debt to revenue ratio of 248.13%. It overstepped the limit by 198.13%.
- For Bauchi, the revenue stood at N54.02 billion while the debt stood at N133.48 billion, thereby giving debt to revenue ratio of 247.1%. The state exceeded the limit by 197.1%.
- Adamawa had revenue of N49.51 billion, a debt of N119.68 billion and a debt to revenue ratio of 241.73%. It exceeded the limit by 191.73%.
- Kaduna had revenue of N68.84 billion, a debt of N154.4 billion and a debt to revenue ratio of 224.26%. It exceeded the limit by 174.26%.
- For Nasarawa, the revenue stood at N47.55 billion while the debt stood at N103.53 billion. The state exceeded the 50% ratio by 167.73%.
- Imo had revenue of N54.18 billion, a debt of N117.05 billion and a debt to revenue ratio of 216.04% and therefore exceeded the limit by 166.04%.
- Oyo had revenue of N59.29 billion, a debt of N123.75 billion and a debt to revenue ratio of 208.72%. It exceeded the limit by 158.72%.
[READ ALSO: DMO set to auction N150 billion in FGN Bonds to investors)
The states with the least debt to revenue ratios
- The states with the least debt to revenue ratios were Yobe, Jigawa, Katsina, Sokoto and Bayelsa. Yobe had revenue of N36.21 billion, a debt of N52.87 billion and a debt to revenue ratio of 68.48%. It exceeded the limit by 18.48%.
- For Jigawa, the revenue stood at N44.99 billion, the debt stood at N60.33 billion and the debt to revenue stood at 74.58%. It exceeded the limit by 24.58%.
- Katsina had revenue of N61.65 billion, a debt of N49.93 billion and a debt to revenue ratio of 80.98%. It exceeded the limit by 30.98%.
- For Sokoto, the revenue stood at N54.46 billion, the debt N50.64 billion and the debt to revenue ratio, 92.99%. It exceeded the ratio by 42.99%.
- Bayelsa had revenue of N153.1 billion, a debt of N147.43 billion and a debt to revenue ratio of 96.29%. The state exceeded the limit by 46.29%.
Coronavirus
COVID-19 Update in Nigeria
On the 7th of March 2021, 269 new confirmed cases and 5 deaths were recorded in Nigeria
The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record significant increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 158,506 confirmed cases.
On the 7th of March 2021, 269 new confirmed cases and 5 deaths were recorded in Nigeria.
To date, 158,506 cases have been confirmed, 137,875 cases have been discharged and 1,969 deaths have been recorded in 36 states and the Federal Capital Territory.
A total of 1.54 million tests have been carried out as of March 7th, 2021 compared to 1.49 million tests a day earlier.
COVID-19 Case Updates- 7th March 2021,
- Total Number of Cases – 158,506
- Total Number Discharged – 137,890
- Total Deaths – 1,969
- Total Tests Carried out – 1,544,008
According to the NCDC, the 269 new cases are reported from 19 states- Enugu (78), Bauchi (37), Rivers (22), Imo (18), Ogun (16), FCT (15), Akwa Ibom (13), Kaduna (13), Kebbi (11), Kwara (9), Edo(7), Ekiti (6), Borno (5), Yobe(5), Kano (4) Nasarawa (3), Osun (3), Anambra (2) and Plateau (2).
Meanwhile, the latest numbers bring Lagos state total confirmed cases to 56,444, followed by Abuja (19,350), Plateau (8,944), Kaduna (8,658), Oyo (6,766), Rivers (6,680), Edo (4,670), Ogun (4,437), Kano (3,844), Ondo (3,066), Kwara (2,962), Delta (2,582), Osun (2,457), Nasarawa (2,251), Enugu (2,156), Katsina (2,060), Gombe (2,010), Ebonyi (1,951), Anambra (1,813), Akwa Ibom (1,610), and Abia (1,588).
Imo State has recorded 1,569 cases, Borno (1,308), Bauchi (1,274), Benue (1,188), Adamawa (942), Niger (919), Taraba (863), Ekiti (834), Bayelsa (779), Sokoto (769), Jigawa (496), Kebbi (412), Cross River (334), Yobe (293), Zamfara (222), while Kogi state has recorded 5 cases only.
READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government
Lock Down and Curfew
In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.
The movement restriction, which was extended by another two weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.
On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.
On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.
Governor Babajide Sanwo-Olu of Lagos State announced the closed down of the Eti-Osa Isolation Centre, with effect from Friday, 31st July 2020. He also mentioned that the Agidingbi Isolation Centre would also be closed and the patients relocated to a large capacity centre.
Due to the increased number of covid-19 cases in Nigeria, the Nigerian government ordered the reopening of Isolation and treatment centres in the country on Thursday, 10th December 2020.
On 26th January 2021, the Federal Government announced the extension of the guidelines of phase 3 of the eased lockdown by one month following the rising cases of the coronavirus disease in the country and the expiration of phase 3 of the eased lockdown.
On 28th February 2021, the federal government confirmed that the first tranche of Covid-19 vaccines will arrive in Nigeria on Tuesday, March 2nd, 2021.
On Tuesday, 2nd March 2021, the National Primary health Care Development Agency announced the arrival of the expected COVX Astrazeneca/Oxford covid-19 vaccines.
On Saturday, 6th March 2021, President Muhammadu Buhari and his vice, Yemi Osinbajo received vaccination against the covid-19 as the State House in Abuja.
READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous
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Maruf A. O
February 7, 2020 at 7:41 am
I pray our dear nation should not crash one day. If there’s no checkmate and balance on the trend of borrowing by today’s government. May Almighty God save the country.
Anonymous
February 8, 2020 at 1:34 pm
Most of the states are owing more than their total revenue for ten years. Is there any future for Nigeria?