The 36 states of the Nigerian federation pay N21.62B as external debt deductions in Q1 2022

In Q1 2022, the 36 states of Nigeria collectively paid N21.62 billion in external debt deductions, a 31.5% increase over the N16.44 billion deducted in the same period a year ago.

Data from the Federal Account Allocation Committee (FAAC) report published by the National Bureau of Statistics (NBS) indicate this.

The largest deductions were made in Lagos, Kaduna, and Cross River in Q1 2022 at N7.27 billion, N2.26 billion, and N1.36 billion, respectively. Between January and March 2022, N2.18 trillion was distributed across the various governmental levels and revenue-generating entities, according to the report as retrieved by Nairametrics.

Furthermore, the federal government got N720.21 billion during the review period, compared to the state governments' gross allocation of N590.45 billion. Likewise, local governments received N436.37 billion, while the 13 percent oil derivation money, which was distributed to oil-producing states, included N145.4 billion.

The top states with the greatest reductions in external debt during the most recent reporting quarter are shown below.

Lagos State

Lagos State's gross allocation for the first quarter of 2022 was reduced by N7.27 billion, or 33.6 percent of the total amount for the 36 states. The deductions for Lagos State's external debt increased from N5.69 billion in deductions during the same time in 2021 by 27.93%.

Looking at Lagos State's debt profile reveals that as of December 2021, the state has the greatest overall amount of foreign debt among all the states, totaling $1.33 billion.

Kaduna State

In the review period, Kaduna State had N2.26 billion deducted as an external debt payment, making up 10.5% of all state deductions. This is an increase of 47.22% year over year from the N1.54 billion deducted in the same period a year ago. The country's external debt as of December 2021 was $595.12 million.

Cross River State

In Q1 2022, Cross River's external debt deduction made up 6.3% of the total N21.62 billion taken from all of 36 states during the review period. Its deductions, rose by 80.6%, from N754.97 million in Q1 2021 to N1.36 billion in the period under review. Cross River reported $279.71 million in exterbal debt as of the end of 2021, according to the Debt Management Office (DMO).

Oyo State

In Q1 2022, Oyo State had N1.24 billion deducted from its quarterly allotments as a repayment for its external debt, a 12.4% increase from N1.09 billion deducted in Q1 2021. Oyo State's external debt profile was $85.27 million of the state's external debt breakdown, as of December 2021.

Rivers State

External debt deductions in Q1 2022 lowered Rivers State's contribution from the federal budget by N800.58 million, a 14.71% increase over the N697.92 million deducted in Q1 2021. Its external debt profile was $147.78 million as of December 2021.

Other state include:

·        Bauchi – N576.41 million

·        Osun – N567.77 million

·        Ogun – N547.23 million

·        Ekiti – N491.88 million

·        Katsina – N481.48 million