Lagos has emerged the state with the highest external debt with a 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 $87million, Enugu $62 million, Katsina $78 million, Osun $67 million and Oyo State $72 million.
On the other hand, the Federal Government’s domestic debt stood at $47.05 billion or N7.9 trillion, while those of the states stood at $10.97 billion or N1.708 trillion. Federal Government’s domestic debt is made up of N4.792 trillion bonds, N2.815 trillion Treasury bills and N296.2 billion treasury bonds.
According to figures published by the Debt Management Office in Abuja, the total debt stock of the Federal Government and the 36 states of the federation including the Federal Capital Territory amounted to N11.243 trillion or $67.726 billion. States and the Federal Capital Territory as at 31st December 2014, had a domestic debt profile of N1.707 trillion or $10.967 billion.
As at June last year, states in the federation had a domestic debt stock of N1.551 trillion or $9.963 billion. The Federal Government’s share of the rising external debt then stood at $6.363 billion. A breakdown of the debt showed that $3.146 billion of the debt owed by states were borrowed from multilateral institution while $118.9 million were bilateral loans. In the case of the Federal Government $3.652 billion were loans sourced from multilateral institutions while a total of $2.793 billion were loans obtained from China Export-Import Bank and the funds the Federal Government raised from Eurobond.
However, the DMO said that the Federal Government debt is sustainable as its debt sustainability analysis showed that the debt/GDP ratio was only 2.4 per cent.