• Domestic debt of the Federal Government rose by N4.69tn
  • Domestic debt of the 36 states of the federation and the Federal Capital Territory rose by N1.64tn



The resort to borrowing by the country to finance virtually everything has become worrisome to many analysts, with the state governments increasing their exposure to the foreign and domestic debt markets at will, EVEREST AMAEFULE writes

The 36 states of the federation and the Federal Capital Territory increased their domestic debts by N1.64tn in the past three years, available data have shown.

According to statistics obtained from the Debt Management Office, the subnational governments raised their domestic borrowings from N1.71tn as of December 2014 to N3.35tn as of December 2017.

This shows that the subnational governments ramped up their domestic indebtedness by N1.64tn within a period of three years ending December 31, 2017. This shows an increase of 95.9 per cent in the local debts within the three-year period.

Within the same period, the domestic debt of the Federal Government rose from N7.9tn to N12.59tn. This means that within the timeframe, the domestic debt of the Federal Government rose by N4.69tn.

This means that the domestic debt owed by the Federal Government rose in the three-year period by 59.37 per cent.

Although the domestic debt of the Federal Government exceeds that of the subnational governments put together, the states grew their domestic debts by a higher percentage of 95.9 per cent compared to the 59.37 per cent for the central government.