22 States and FCT Reduce Domestic Debts by ₦176 Billion in Q3 2023

In the third quarter of 2023, the combined domestic debt of 22 states and the Federal Capital Territory (FCT) saw a notable reduction of ₦176.3 billion, according to data released by the Debt Management Office (DMO).

The DMO reported that the overall domestic debt for all 36 states and the FCT decreased by ₦74.64 billion within the three-month period.

As of June 2023, the states’ domestic debt had reached ₦5.82 trillion but experienced a decline to ₦5.74 trillion by September, according to the agency.

The latest report indicates that in Q3, a total of 22 states out of the 36, along with the FCT, successfully reduced their debts, showcasing an increase compared to 15 states in the second quarter (Q2).

The states were Delta, Lagos, Akwa Ibom, Bayelsa, Adamawa, Abia, Anambra, Ebonyi, Imo, Ekiti, Niger, Kogi, Ondo, Taraba, Enugu, Kaduna, Oyo, Kwara, Osun, Sokoto, Jigawa, Kebbi, and FCT.

In a quarter marked by debt reduction efforts across the states, Delta emerged top, slashing its domestic liabilities by a jaw-dropping N93.9 billion, compared to Lagos’ N35.94 billion and FCT’s N7.79 billion.

Here is a breakdown of states that reduced domestic debts in Q3:

1. Delta: N93.92 billion
2. Lagos: N35.94 billion
3. FCT: N7.79 billion
4. Akwa Ibom: N6.13 billion
5. Bayelsa: N5.18 billion
6. Adamawa: N5.16 billion
7. Abia: N3.69 billion
8. Anambra: N2.68 billion
9. Ebonyi: N2.54 billion
10. Imo: N1.94 billion
11. Ekiti: N1.89 billion
12. Niger: N1.76 billion
13. Kogi: N1.35 billion
14. Ondo: N1.28 billion
15. Tarawa: N1.02 billion
16. Enugu: N983.96 million
17. Kaduna: N697.18 million
18. Oyo: N634.50 million
19. Kwara: N618.21 million
20. Osun: N437.88 million
21. Sokoto: N300.11 million
22. Jigawa: N242 million
23. Kebbi: N67.09 million

KANO, OGUN DEBT REMAINS UNCHANGED

Meanwhile, the debt burden of Kano and Ogun remained unchanged in Q3 this year, TheCable Index analysis of the data shows.

The two states maintained their domestic debt levels at N122.36 billion and N293.20 billion respectively, while 12 other states saw their debt profiles rise in the past three months.

The DMO said Katsina led the pack in debt growth, with a N36.94 billion jump (59% increase), leaving Bauchi (N15.13 billion), Zamfara (N11.99 billion), and Plateau (N11.86 billion) behind.

Here is a list of 12 states that increased their domestic debt in Q3:

1. Katsina: N36.94 billion
2. Bauchi: N15.13 billion
3. Zamfara: N11.99 billion
4. Plateau: N11,86 billion
5. Borno: N8.65 billion
6. Cross River: N7.99 billion
7. Rivers: N7.07 billion
8. Gombe: N1.044 billion
9. Yobe: N342.16 million
10. Benue: N241.19 million
11. Nasarawa: N192.79 million
12. Edo: N174.95 million