13 New State Governors Rack Up N226 Billion Debt in Six Months, Reveals DMO Report

In a revealing disclosure, it has come to light that 13 newly appointed state governors have collectively amassed a staggering debt of N226.8 billion within the initial six months of their tenure. This revelation stems from a comprehensive analysis of the most recent sub-national debt reports issued by the Debt Management Office (DMO).

The borrowed funds were sourced both domestically and externally, with the latter calculated based on the prevailing exchange rate of N889 per dollar, as utilized by the DMO in its report.

The sub-national debts are bifurcated into domestic borrowings from local creditors and external borrowings from international financiers, including esteemed institutions such as the World Bank and the International Monetary Fund (IMF).

The data pertaining to domestic and external debts, as disclosed on the DMO’s official website, were compiled as of December 30 and June 30, 2023, respectively.

Among the states, Benue, Cross Rivers, Katsina, Niger, Plateau, Rivers, Zamfara, and the Federal Capital Territory accessed a cumulative sum of N115.57 billion from domestic creditors. Conversely, governors of Ebonyi, Kaduna, Kano, Niger, Plateau, Sokoto, Taraba, and Zamfara secured $125.1 million (equivalent to N111.24 billion) from external sources.

A granular examination of the data reveals that Governor Bassey Otu of Cross Rivers obtained the largest loan quantum, amassing N16.2 billion from domestic lenders and $57.95 million from foreign creditors during the period spanning June to December 2023.

Katsina trailed closely behind, witnessing a surge in debt accumulation from N62.37 billion to N99.3 billion by December 2023, marking an increase of N36.93 billion within the same period.

Niger state secured the third position, with its domestic debt escalating from N121.95 billion in June 2023 to N139.8 billion by December of the same year, amounting to N17.85 billion.

Other states such as Plateau, Rivers, Zamfara, and the Federal Capital Territory, under the leadership of Nyesom Wike, also engaged in significant borrowing activities from domestic creditors, collectively accumulating substantial amounts to fuel various developmental endeavors.

On the foreign debt front, Governor Francis Nwifuru of Ebonyi led the pack with an external debt accumulation of $37.54 million. Similarly, Governor Uba Sani of Kaduna borrowed $17.69 million from international financiers to bolster the state’s economic initiatives.

The trend persisted across other states, with notable borrowings from external sources witnessed in Kano, Niger, Plateau, Sokoto, Taraba, and Zamfara, underscoring a widespread reliance on external funding avenues to supplement domestic financial resources.