Nigerian states have collectively spent a staggering N139.92 billion on servicing external debt in the first half of 2024, a 122% increase from the same period last year.
The data from the National Bureau of Statistics (NBS) reveals that states have more than doubled their debt service costs, from around N9 billion monthly in 2023 to over N20 billion this year.
The top 10 states with the highest external debt service costs are:
1. Lagos State – N32.44 billion
2. Kaduna State – N23.08 billion
3. Cross River State – N7.87 billion
4. Oyo State – N6.36 billion
5. Bauchi State – N6.33 billion
6. Edo State – N5.9 billion
7. Rivers State – N4.6 billion
8. Ogun State – N4.29 billion
9. Adamawa State – N3.57 billion
10. Osun State – N3.4 billion
Debt Servicing Burden: How Nigeria’s States Are Struggling to Pay Their Dues
The debt crisis in Nigeria continues to worsen, with states struggling to pay their external debts amidst economic challenges. The situation is further compounded by the devaluation of the naira, which has increased the cost of debt servicing. As a result, states are finding it difficult to meet their debt obligations, let alone invest in critical infrastructure and social services.
The implications of this debt crisis are far-reaching, with potential consequences for the entire country. As the debt burden continues to mount, Nigeria’s economic growth and development are likely to suffer. It is imperative that the government takes urgent action to address the debt crisis and find a sustainable solution to this pressing issue.
