Debts owed by states are in multiple categories: foreign debt,
domestic debt, Central Bank of Nigeria bailout funds and the Budget
Support Facility arranged for them by the Federal Government.
The debt profile of the country and its component parts has
recently come into focus, more especially since most states could hardly
embark on any capital-intensive project or pay salaries due to huge
domestic and foreign debts.
Sunday Tribune was able to calculate foreign, domestic and bailout
funds of states, details of the budget support facility of N510 billion
to 35 states was yet to be made available as of the time of filing this
report.
Below are the 5 most indebted states and their debt profile:
1. Lagos
Lagos, recently declared sixth largest economy in Africa by the
United Nations Development Programme (UNDP), leading the pack with debt
profile of at least N368,409,682,283.25.
2. Ondo
Ondo, an oil producing state, earning additional 13 percent
derivation fund from crude produced from oil wells located within the
state is owing N94,404,105,397.7 debts to various creditors.
Last year, outgoing governor of the state, Olusegun Mimiko
disclosed that his government was working with different groups of
investors to begin exploration of bitumen available in large quantities
and also establish a chocolate manufacturing factory.
The state, aside owing staff salaries, was yet to see the
establishment of promised development projects and is owing at least
N51,978,164,924.55, according to figures from Debt Management Office.
3. Osun
Also, Ogbeni Rauf Aregbesola of Osun State promised to turn the
state into a commercial hub when he was campaigning for office around
2007.
About a year into his administration, he told reporters that he
would never wait for monthly allocation from Abuja to settle wage bill.
Presently and despite huge potentials of the state in terms of
agriculture, mineral and human resources, civil servants are being paid
half salaries which are not even paid up to date.
According to investigation, the state owes N203,151,879,799.5 without the running budget support facility.
4. Ogun
Ogun is an aquatic state with all the accompanying potentials.
Available records show that Ogun is heavily indebted to the tune of
N126,353,703,792.15.
5. Ekiti
Ekiti State, aside also depending almost solely on monthly
disbursements from Abuja, is owing workers some arrears of salary in
addition to Federal Government, other domestic and foreign creditors the
sum of N78,938,996,132.51 in debts.
Source: Nigerian Tribune
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