The thirty-six (36) states of the federation parted with a sum of N21.62 billion as external debt deductions in the first quarter of 2022, an increase of 31.5% from N16.44 billion deducted in the corresponding period of 2021.
This is according to data extracted from the Federal Account Allocation Committee (FAAC) report, released by the National Bureau of Statistics (NBS).
Lagos, Kaduna, and Cross River recorded the highest deductions in the review period, with N7.27 billion, N2.26 billion, and N1.36 billion deducted respectively in Q1 2022. A total of N2.18 trillion was shared amongst the different levels of government and various revenue-generating units between January and March 2022.
Notably, the state governments received N590.45 billion as gross allocation in the period under review, while the federal government received a sum of N720.21 billion in the same period. Also, the local governments shared N436.37 billion, while N145.4 billion was allocated to oil-producing states as part of the 13% oil derivation fund.
Below are the top states with the highest external debt deductions in Q1 2022.
Lagos State – N7.27 billion
A sum of N7.27 billion was deducted from the gross allocation to Lagos State in Q1 2022, representing 33.6% of the total amount for the 36 six states. Lagos State’s external debt deductions increased by 27.93% compared to N5.69 billion deducted in the comparable period of 2021.
A look at the debt profile of Lagos State shows that the economic hub owes a total of $1.33 billion in foreign debt as of December 2021, the highest compared to other states.
Kaduna State – N2.26 billion
Kaduna State had a sum of N2.26 billion deducted as external debt payment in the review period, accounting for 10.5% of the total states’ deductions, increasing by 47.22% year-on-year compared to N1.54 billion deducted in Q1 2021. As of December 2021, its external debt stood at $595.12 million.
Cross River – N1.36 billion
Cross River’s external debt deduction in Q1 2022 accounted for 6.3% of the total 21.62 billion that was deducted from the entire states in the review period. Meanwhile, its deductions increased by 80.6% from N754.97 million recorded in Q1 2021 to N1.36 billion in the period under review. According to the Debt Management Office, Cross River’s external debt as of the end of 2021 stood at $279.71 million.
Oyo State – N1.24 billion
A total of N1.24 billion was deducted from the quarterly allocations of Oyo State in Q1 2022 as payment obligation for its external debts, a 12.4% increase compared to N1.09 billion deducted in the previous year. A cursory look at the state’s external debt breakdown shows that Oyo State’s external debt profile stood at $85.27 million as of December 2021.
Rivers State – N800.58 million
Rivers State saw its allocation from the federal purse reduced by N800.58 million as a result of external debt deductions in Q1 2022, an increase of 14.71% compared to N697.92 million deducted in the corresponding period of 2021. As of December 2021, its external debt profile stood at $147.78 million.
Bauchi – N576.41 million
Osun – N567.77 million
Ogun – N547.23 million
Ekiti – N491.88 million
Katsina – N481.48 million
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