[size=16pt]Lagos, Kaduna, Cross River top foreign debt list[/size]

Lagos, Kaduna and Cross River states are top on the list of the states of the federation that are indebted to foreign institutions.

According to the list, obtained from the Debt Management Office in Abuja on Thursday, the three states owe $612.64m (91.90bn) out of a total $1.84bn foreign debt of the 36 states of the federation, including the Federal Capital Territory.

The debt of the three states represents 33.26 per cent of the foreign debt owed by the 36 states and the FCT. The three states’ foreign debt liability also represents 13.51 per cent of the nation’s total foreign debt.

Lagos State, according to the breakdown, is the most indebted state of the federation. With a total foreign debt of $369.20m (N55.38bn), Lagos holds about 20 per cent of the country’s sub-national foreign debt stock.

The state’s foreign debt stock also represents 8.14 per cent of the country’s total foreign debt stock, according to the list.

Details of the facilities showed that the foreign debt liability of Lagos State had been ballooned by a World Bank facility obtained with the support of the Federal Government for its urban renewal programme about four years ago.

Kaduna State followed on the list, with a liability of $143.45m (N21.52bn), while Cross River had $99.99m (N15bn).

Other states in the top league include Oyo, $88.16m; Ogun, $73.72m; Katsina, $72.72m; Osun, 59.81m; and Akwa Ibom, $59.48m.

The least indebted states were Borno, $13.58m; Delta, $16.6m; Anambra, $17.9m; Taraba, $19.07m; and Benue, $23.66m.

The 36 states and the FCT account for 40.62 per cent of the nation’s total foreign debt liability.

Some states have also resorted to internal borrowing through the capital and money markets to shore up what they receive from the federation account. But the DMO has not yet captured the total internal indebtedness of the states.

Worried by the possibility of sub-national debts growing beyond a sustainable level, the debt office recently issued guidelines for borrowing by the 36 states of the federation and the FCT.

One of such requirements is obtaining approval from their legislative arms of government. The Office has also helped some states to establish their debt management units.

The Director-General, DMO, Dr. Abraham Nwankwo, recently put Nigeria’s total debt stock, as at December 31, 2010, at $34.6bn (about N5.19tn).

Out of this, a total of N4.5tn or 86.71 per cent was raised from within the shores of the nation.

Much of the domestic debt was incurred through the Federal Government of Nigeria Bonds with maturity dates ranging from three to 20 years, issued by DMO on a monthly basis.

Meanwhile, activities of the agency for the month of January showed that it raised a total of N60bn for the Federal Government through the issuance of FGN bonds.

Through the FGN bond with a maturity date of February 19, 2013, it raised a total of N30bn. The bond has a 10.4 per cent rate.

Through another bond with a maturity date of April 23, 2015, it also raised a total of N30bn. This bond, with a longer maturity period, attracts an interest rate of 11.13 per cent.

http://www.punchng.com/Articl.aspx?theartic=Art20110211044590

At least it is good to know when these governors sold us all into slavery.
Watch out and check your state on the list of foreign debtors.

Aren't those also some of the most developed states in Nigeria? Or is the WORST thing now HAVING DEBT?

yea thats are the only states doing anything with themselves. debt is a sign of development, it's virtually impossible to do it without it unless you have something like oil, which all those states lack except cross river

Well, I think that Enugu is doing well. It is not an oil state,yet I don't see the state in the top list of top debtors.

Anambra is not an oil producing state and has done some serious road works, yet remain among the lowest debtors.

Methinks that debt is a thing of principle. You either want it or you don't, depending on your goal and character.

Again, if a state is actually developing, is DEBT bad in that sense? Principle Sminshiple . . . . How do you expect States with no resources and little allocation to fund their development, and take care of high proportion of the population living way below poverty line? STEAL?

How come kano is not on the list and how are so sure that the most indebted state are indeed the most developed state?