Debts may not necessarily be bad. But in Nigerian states, there are many reasons to worry. According to BudgIT, most of our states are technically yoyo. Yes, Oyo, Kogi, Osun, Ekiti, Plateau, Adamawa, Bauchi, Gombe, Cross River, Benue, Taraba, Lagos, and Abia states were unable to fund their recurrent expenditure and loan repayments due in 2019.
Across Nigeria, we spend all the time examining the federal government without knowing that nothing is happening in the states. Lagos state seems to be out of order! I mean, the 6th largest economy in Africa needs recalibration. Rivers state seems to be in charge of its future, surprisingly.
For the full report, please click here.
Update: This report has some errors which the authors have acknowledged.
“Indeed, @followlasg (Lagos State Government) cannot be included in the category of States with a recurrent deficit; thus, not borrowing to pay salaries,” BudgIT said.
“Our metrics focused on NET FAAC and IGR as published by the National Bureau of Statistics due to the disparate nature of revenue framework among Nigerian states.
“We also apologise for including a special debt financing program as part of the recurrent expenditure which might be a total representation of its finances.”