The total debt of Nigerian states has risen to N11.47tn as of June 30, 2024 despite higher allocations from the Federation Account Allocation Committee.
This is according to an analysis of data from the public debt reports released by the Debt Management Office. The figure for the second quarter of 2024 represents a 14.57 per cent increase from the N10.01tn recorded in December 2023.
The PUNCH, however, observed that the increase was driven primarily by a sharp rise in external debt, worsened by the devaluation of the naira.
External debt for the states and the Federal Capital Territory climbed from $4.61bn to $4.89bn, reflecting a 6.14 per cent increase.
However, in naira terms, this figure surged by a staggering 73.46 per cent, from N4.15tn to N7.2tn, following the devaluation of the naira from N899.39/$1 in December 2023 to N1,470.19/$1 by June 2024.
Domestic debt for states and the FCT, however, saw a significant decline of 27.12 per cent, dropping from N5.86tn to N4.27tn.
The PUNCH further observed that there was an increase of N200bn or 4.91 per cent between March 31 (N4.07tn) and June 30, 2024, which means that the subnational debt is on the rise after a fall earlier this year.
