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State govt contributes 35% of Nigeria’s debt

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By Okunloye Abiodun

35% of the current debt profile of Nigeria are state owned - Policy Analyst.

In a press statement in Benin City with the title “Stop the Ostrich Game: Governors Can Change the Narrative of Development.” Mr. Taiwo Akerele, the Technical Adviser for the Federal Government on post COVID-19 Economic Recovery, says the state governments in Nigeria are responsible for the majority of the development challenges that the country faces. He stated that the state governments were responsible for 35 percent of the current debt profile of Nigeria, in addition to jointly being responsible for 30 percent of that debt with the federal government.

Akerele, who has formerly served in the capacity of the Chief of Staff to Governor Obaseki of Edo State, stated that he has witnessed with amazement how many of the state governors, particularly those in the opposing party, have continuously piled up the blame of underdevelopment of the country on the federal government, and even more so in the sectors of health and education and in more recent times the rapidly increasing debt crisis in the country.

With debt rising, Nigeria has failed already – a southern-state governor.

Concerning the issue of the country’s debt margin, a governor from one of the southern states was recently quoted as saying that Nigeria’s debt is slowly creeping close to N60 trillion (about $134 billion), and he came to the conclusion that Nigeria has failed already. However, Akerele placed the blame on state governors, particularly those who were elected from political parties that were in opposition to the administration, for the shortcomings in the delivery of healthcare and the infrastructure of roads.

Responding to the governor’s quote, he said his role as a policy analyst does not require him to verify or disprove his claims, which are instead the responsibility of the Debt Management Office (DMO) and the Central Bank of Nigeria (CBN). However, he affirmed that he had been under the impression that the same governor would go ahead and state in unequivocal terms his own state’s share of the debt burden as well as what the state has accomplished with the money for the purpose it was approved for. Unfortunately, he once again chose to ignore the issue at hand.

Akerele counters the governor’s claim and reassures the government effort.

Furthermore, according to Akerele, he revealed that statistical data from the Debt Management Office (DMO) show evidence that only 35 percent of the total country’s debts did belong to the federal government, and around 35 percent of it is owned by the 36 states, while the outstanding 30 percent of the debt is jointly owned by them, particularly borrowings that are related to COVID-19 recovery and immunization and budget support instruments.

The DMO also revealed that the Federal Government, as of the second quarter of 2022, was unable to obtain any foreign loans. Having said all those as the south governor’s claim, he said if this is the case, then on what basis could a state governor, most especially one from the opposition party, firmly throw the debt issue of the country on the foot of the federal government for raising the Nigerian population? He asked.

30% of Nigeria’s health care needs are funded by the federal government.

Moreover, he added that he is open to being corrected; however, the data that is currently available reveals that 70% of the healthcare requirements of Nigerians fall within the scope of the primary healthcare (LGA) as well as secondary healthcare (state); the remaining 30 percent of the health care needs are met by what is known as Tertiary Centers, which include Teaching and Specialist hospitals, and has primarily been funded by the Federal Government of Nigeria.


Related Link

CBN: Website

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jdpumping
jdpumping
1 year ago

Imagine debt been accrued by Nigeria 30percent is state owned and it’s so overwhelming owing over 60 trillion naira and how do we go about it I just cannot fathom the solution presently.

Adeolastan
Adeolastan
1 year ago

Accumulation of debts by different arms of government has been the issue in Nigeria and it is cause for concern because most of this money were just borrow without any tangible infrastructure to show for it and this is seriously affecting our economy.

Abusi
Abusi
1 year ago

It is so unfortunate. The hike in the national debt really shows that we have failed as a nation. If the state government contributes 30% to the debt, imagine that of the Federal government. We need to service this debts either we like it or not.

Adesanyaj72
Adesanyaj72
1 year ago

The current debt profile of Nigeria was caused by the state governments, and the states share some percentage of the federal government’s debt.

Christiana
Christiana
1 year ago

The increase in the national debt is definitive evidence that we have underperformed as a nation.

Tolaniiii
Tolaniiii
1 year ago

The current level of debt in Nigeria was brought about by the state governments, and each state is responsible for some portion of the debt owed by the federal government.

Chibuzor
Chibuzor
1 year ago

Incredibly, we have seen several state governors, especially those from the opposing party, place all of the responsibility for the country’s lack of progress on the federal government.

Hassan Isa
Hassan Isa
1 year ago

the federal government is to blame for the country’s economic decline, particularly in the fields of health and education, and for the country’s fast worsening debt situation.

Nwachukwu Kingsley
Nwachukwu Kingsley
1 year ago

This doesnt make sense because why will a state governor, blame the federal government for Nigeria’s ballooning debt, what grounds does he have to do so?

Taiwoo
Taiwoo
1 year ago

In Nigeria, the problem is the accumulation of debts by various government arms, which is worrisome because most of these funds were borrowed without producing any appreciable physical assets.

Bola12
Bola12
1 year ago

In Nigeria, many government arms have accumulated debts, which is troubling because most of these cash were obtained without producing tangible goods.

Kazeem1
Kazeem1
1 year ago

This our debt is never going to decrease it just keeps piling up, something needs to be done about it as soon as possible because that is very bad.

Godsewill Ifeanyi
Godsewill Ifeanyi
1 year ago

We have failed as a nation, and the rising debt is proof of that. Imagine the Federal Government’s contribution to the debt if the state government does so.

Remi1
Remi1
1 year ago

Nigeria’s debt is slowly approaching N60 trillion (approximately $134 billion), according to a governor from one of the southern states who was recently reported as stating. He came to the conclusion that Nigeria has already collapsed.

Tonerol10
Tonerol10
1 year ago

Nigeria has failed as a country. Imagine the amount of debt the country is owning.
Government will collect loan without utilizing it, no good plan for the loan.
This is a big disgrace to Nigeria government

Haykaylyon26
Haykaylyon26
1 year ago

The debt is continue to rise something need to be done before things go bad our debt need to be reducing not rising

Iyanu12345ogg
Iyanu12345ogg
1 year ago

Why blaming the federal govt alone for the economic downturn of the country? State govt should be held responsible for some portion of the debt owed by the federal government. Our govt in general has failed us.

SarahDiv
SarahDiv
1 year ago

The state governors in Nigeria are not productive but solely on federal government for are truly responsible for about #38% of Nigerian debt.

DimOla
DimOla
1 year ago

We have so many incompetent governors in most states in Nigeria. They are not ready to contribute positively to growth of the country. That is why the Nigerian governors contribute 38% debt incurred by Nigeria.

Ultra0711
Ultra0711
1 year ago

The rise in the national debt is a stark illustration of our collective failure. If each state government is responsible for 30% of the national debt, just think what the Federal government is doing.

theApr
theApr
1 year ago

State governments are responsible for a portion of the federal government’s debt, which has led to Nigeria’s current debt profile. Everyone who has contributed to this debt should make every effort to pay it off.