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FG removes N78b from states allocation

Report from the National Bureau of Statistics (NBS), shows that the Federal Government deducted N78bn from allocations made to the states for external debt servicing.

This report is contained in the Federation Account Allocation Committee (FAAC) Disbursement reports published by the NBS.

The deductions were made in 2022 from the allocations given to state governments from the Federation Account.

The most hit state by the deductions was Lagos, with about N23.61bn deducted in 2022 for external debt servicing, followed by Kaduna with N10.25b and Cross River with N7.56bn deduction.

About N4.27bn, N2.74bn, N2.62bn and N2.15bn were deducted from Oyo, Rivers, Ogun and Edo state respectively.

While the least affected states were Borno (N309.79m), Delta (417.54m) and Zamfara (417.96m). About N7.66bn was deducted each in January and February, and N6.3bn was deducted each for the remaining months of the year.

The sub-national domestic debt stock was N4.46tn by the end of 2021, which means it rose by N870bn within one year.

The data from the Debt Management Office(DMO), reveals that Lagos State recorded the highest domestic debt as of the end of Q4 2022 with N807.2bn; followed by Delta State with N304.25bn and Ogun State with N270.45bn.

The lowest debt recorded was for Jigawa State with N43.95bn, followed by Kebbi State and Katsina State with N61.31bn as well as N62.37bn.

Writing by Julian Osamoto