In 2023, Nigeria faces a fiscal challenge with several states grappling with significant debt burdens. The Spectacles examines the ten most indebted states based on their outstanding liabilities.
1. Lagos (₦1.97 Trillion) Lagos, Nigeria’s economic hub, tops the list with an outstanding debt of ₦1.97 trillion. This is attributed to extensive infrastructure development projects and the state’s pivotal role in the nation’s commerce.
2. Kaduna (₦525.9 Billion) Kaduna, in the second position, carries a debt load of ₦525.9 billion. The state’s debt is primarily linked to investments in education, healthcare, and infrastructural development.
3. Delta (₦511.3 Billion) Delta State follows closely with a debt of ₦511.3 billion. This debt is largely a result of investments in oil-related activities and efforts to diversify the state’s economy.
4. Ogun (₦379.2 Billion) Ogun state ranks fourth with a debt of ₦379.2 billion, attributed to its focus on industrialization and infrastructure projects.
5. Edo (₦325.1 Billion) Edo State holds the fifth position, with a debt totaling ₦325.1 billion. The state’s debt is linked to initiatives in agriculture, education, and urban development.
6. Cross River (₦322.0 Billion) Cross River, in the sixth position, carries a debt of ₦322.0 billion, largely due to investments in tourism, agriculture, and infrastructure.
7. Rivers (₦290.2 Billion) Rivers State ranks seventh with a debt of ₦290.2 billion. The state’s debt is associated with infrastructure projects and efforts to harness its natural resources.
8. Imo (₦280.8 Billion) Imo State, in the eighth position, has a debt totaling ₦280.8 billion. The debt is attributed to initiatives aimed at improving healthcare, education, and infrastructure.
9. Bauchi (₦278.7 Billion) Bauchi State holds the ninth position with a debt of ₦278.7 billion, primarily linked to investments in agriculture, healthcare, and education.
10. Akwa Ibom (₦233.1 Billion) Akwa Ibom State rounds up the top ten most indebted states with a debt of ₦233.1 billion. The state’s debt is associated with projects in the oil and gas sector, as well as infrastructure development.
The indebtedness of these states underscores the complex financial landscape in Nigeria.
While debt can be a tool for development, prudent fiscal management is crucial to ensure sustainability and avoid potential economic challenges.
Monitoring and addressing the factors contributing to these debts will be vital for the overall economic health of both the states and the nation.
