North central states domestic debts reduced significantly in Q1, 2024

By Dare Toba

A SolaceBase review has shown that North Central States’ debt was down in the first quarter of 2024.

This development may be cheering amid concerns about the rising debt profile of states, although the debt management office is yet to release data on the foreign debt of states, to see if there is going to be the same fall.

The review shows that Benue state debt went from N187 billion to N116 billion, showing a drop of N70 billion.

SolaceBase reports that Kogi state also recorded a drop to N38.5 billion from  N121.8 billion.

In a related development in Kwara, domestic debt was reduced from N109.1 billion to N59 billion.

Nasarawa state reduced its debt profile from N71.1 billion to N23 billion, while Niger dropped from N139 billion to N86 billion.

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In Plateau state domestic debt profile was reduced from N173 billion to N107 billion.

In total, all states in North Central Nigeria had their debt reduced domestically.

According to the most recent external debt data published by the debt management office, Benue owes $29 million on the foreign scene, Nasarawa owes $51 million externally, Kwara $44 million, Plateau $32 million and Niger $68 million.

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There have been concerns on the debt profile of Nigerian states and accountability on their management. SERAP has called for a probe of the loans gotten by these states especially as there are large-scale impacts on debt servicing incurred by the states from time to time.

While the foreign debt profile remains unknown, experts may see the significant reduction in debt profile as a good sign for the states fiscal management and development.