Nigerian states have seen a dramatic 123% increase in external debt servicing in the first four months of 2024, rising to N96.52 billion from N43.31 billion in the same period last year. This surge, caused by heightened borrowing costs and currency depreciation, is significantly impacting state budgets.
According to an analysis of Federal Account Allocation Committee (FAAC) data from the National Bureau of Statistics (NBS), total external debt service payments for January to April 2024 reached N96.52 billion, a substantial rise from N43.31 billion in the corresponding period of the previous year.
Lagos and Cross River states are among the most affected, with Cross River’s debt servicing costs rising by 302%. Overall, 80.4% of the amount spent on servicing external debt in 2023 has already been expended in the first four months of 2024.
According to the data, states have moved from spending around N9 billion to over N20 billion monthly, which is more than doubled debt service cost likely due to the naira devaluation.
0
0
