Analysis of the 2019, 2020 debt profile of states
According to the Debt Management Office (DMO) of the nation, there has been an increase in states’ total debt profiles. Precisely, the figure increased by 2% between December 2019 and September 2020. The data establishes a total domestic debt of N4.10 trillion as of December 2019, which grew to N4.19 in September 2020.
Further analysis revealed that, of all states, Kogi state made the highest progress in debt reduction. According to the report, the state was able to reduce her debt from a cumulative N132.5 billion (as at December 31, 2019) to N73.3 billion as of September 30, 2020. This feat was reportedly credited to the state’s well organised fiscal policies and management of resources.
Closely followed by Kogi state in debt reduction between the year 2019 and 2020 is Katsina state. With a decrease of N21.75 billion, the state’s domestic debt reduced from 66.2 billion in 2019 to N44.4 billion as of September 2020.
The comparison of the Federal Capital Territory domestic debt also revealed a reduction of N17.94 billion, while Edo state also achieved a reduction of N17.75 billion. Other states whose debt profiles reduced within the years under review are Ekiti state with a decrease of N9.84 billion; Plateau state achieved a debt reduction of N7 billion, Kaduna state recorded N6.39 billion, and Imo state recorded N6.26 billion drop in their 2020 domestic debt profile.
While about seven states and FCT recorded reduced debt profiles, several states accumulated more debts within December 2019 and September 2020. Despite its high internally generated revenue, Lagos State topped the lists of states with increased debt profile with an additional N49.09 billion. According to the December 2019 report, the state had a total domestic debt of N444.4 billion while the September 2020 report revealed a total deficit of N493.3 billion.
Lagos State government was slightly closed down by Taraba state which recorded an increase of N40.43 billion, Benue state with an increment of N29.77 billion, Anambra state recorded N25.1 billion increase while Abia state had N20.86 billion additional debt.
Other states with increased domestic debt profiles are Adamawa state with an increase of N14.48 billion, Kano state recorded an additional N9.25 billion, Zamfara state recorded N8.45 billion, Oyo accrued an addition of N8.38 billion, Ogun recorded N7.8 billion and Borno state recorded an additional debt of N6.77 billion from December 2019 to September 2020.