NEITI raises alarm over growing states debt burden

The Nigeria Extractive Industries Transparency Initiative (NEITI) says that the debt burden of the thirty six states of the federation has risen to over N3.342 trillion as at 2016 which signifies serious threat.

Lagos, Delta, Osun and Akwa Ibom topped the debt chart with a total debt profile of N1.262 trillion representing about 38% of debts owed by the 36 States of the Federation.

NEITI in an analysis of the break down said that Lagos was indebted to the tune of N603.25 billion, Delta owes N331.95 billion while Osun and Akwa Ibom are indebted to the tune of N165.91 billion and N161.23 billion respectively, as at 2016.

The data contained NEITI’s Quarterly Review, the third edition, focused on Federal Accounts Allocation Committee (FAAC) disbursements in 2016.

The NEITI publication also expressed concern that the total indebtedness of N3.342 trillion by the 36 states represented 55.15 per cent of the 2016 federal budget of N6.06 trillion and 45.8 per cent of the 2017 federal budget estimates of about N7.3 trillion.

The publication with facts and data from the National Bureau of Statistics, Office of the Accountant General of the Federation, FAAC and Debt Management Office, according to NEITI is consistent with its mandate of monitoring of fiscal allocation and statutory disbursement of revenues due to the three tiers of government.