Bayelsa, six other states fail DMO’s solvency test:

Bayelsa and six other states in the country have failed the domestic debt sustainability analysis undertaken by the Debt Management Office (DMO).

According to the report, which the DMO board, headed by Vice President Namadi Sambo met on Tuesday to consider, the seven states’ domestic indebtedness relative to their IGR positions ranks high beyond the recommended international threshold of between 92 per cent and 167 per cent.

Indeed, the affected states, according to the report on Pages 26 and 27, are presented in pink colour signifying the danger level of their indebtedness. Those next to this endangered category are stated in yellow while states whose positions are healthy are presented in green colour.

Bayelsa led the heavily indebted states with a score of 1,712 per cent insolvency.

The state has a domestic debt stock of N162.82 billion as at the end of December 2011, while its IGR was put at N9.510 billion.

It was followed by Cross River State, which by end of 2011 had a domestic debt stock of N90.750 billion, relative to its IGR size of N16.553 billion.

The debt management agency said the state’s indebtedness ratio is 548 per cent far above the recommended threshold.

The third in this category was Zamfara State, which scored 497 per cent, representing its total domestic debt of N12.968 billion relative to its N2.611 billion IGR.

Ebonyi State was next in line with a score of 272 per cent, representing her domestic debt stock of N40.239 billion relative to her IGR of N14.778 billion.

Oil-rich Delta State came fifth with a rating of 263 per cent as the state’s domestic debt stock then was N90.843 billion, while its IGR stood at N34.601 billion.

Adamawa State followed with a rating of 217 per cent, with a debt stock of N25.954 billion, while its IGR stood at N11.948 billion.



Kogi State was seventh on the league with a solvency score of 207 per cent score, representing its indebtedness of N34.122 billion in relation to its IGR of N16.500 billion.

The Federal Capital Territory (FCT) too was presented in the same pink colour among the seven risky states, though its debt figure was not presented on the table.

The DMO offered explanation on the solvency exercise relative to IGR: “Given the fact that sustainability or otherwise of domestic debts are by best practice to be measured against the own revenue of the borrower, an analysis of the domestic debts of the states to their IGR was also undertaken.

“For this, the Debt Relief International (DRI) solvency threshold of 92 per cent to 167 per cent is applied. The result as shown in the table below outlines the need for the sub-national governments to grow their IGRs to reduce excessive pressure on their statutory allocations in the running of their governments and free up resources for other developmental projects.”

Six other states presented in yellow, signifying warning alert as they are close to attaining the solvency bar, are Edo, Akwa Ibom, Kwara, Ondo, Plateau and Taraba.

The remaining states presented in green all scored below the recommended solvency ratio of 92 per cent.

Source:

 http://businessnews.com.ng/2013/03/18/bayelsa-six-other-states-fail-dmos-solvency-test/?utm_source=&utm_medium=twitter&utm_campaign=bayelsa-six-other-states-fail-dmos-solvency-test

Bkl4real: Bayelsa, six other states fail DMO’s solvency test:

Bayelsa and six other states in the country have failed the domestic debt sustainability analysis undertaken by the Debt Management Office (DMO).

According to the report, which the DMO board, headed by Vice President Namadi Sambo met on Tuesday to consider, the seven states’ domestic indebtedness relative to their IGR positions ranks high beyond the recommended international threshold of between 92 per cent and 167 per cent.

Indeed, the affected states, according to the report on Pages 26 and 27, are presented in pink colour signifying the danger level of their indebtedness. Those next to this endangered category are stated in yellow while states whose positions are healthy are presented in green colour.

Bayelsa led the heavily indebted states with a score of 1,712 per cent insolvency.

The state has a domestic debt stock of N162.82 billion as at the end of December 2011, while its IGR was put at N9.510 billion.

It was followed by Cross River State, which by end of 2011 had a domestic debt stock of N90.750 billion, relative to its IGR size of N16.553 billion.

The debt management agency said the state’s indebtedness ratio is 548 per cent far above the recommended threshold.

The third in this category was Zamfara State, which scored 497 per cent, representing its total domestic debt of N12.968 billion relative to its N2.611 billion IGR.

Ebonyi State was next in line with a score of 272 per cent, representing her domestic debt stock of N40.239 billion relative to her IGR of N14.778 billion.

Oil-rich Delta State came fifth with a rating of 263 per cent as the state’s domestic debt stock then was N90.843 billion, while its IGR stood at N34.601 billion.

Adamawa State followed with a rating of 217 per cent, with a debt stock of N25.954 billion, while its IGR stood at N11.948 billion.



Kogi State was seventh on the league with a solvency score of 207 per cent score, representing its indebtedness of N34.122 billion in relation to its IGR of N16.500 billion.

The Federal Capital Territory (FCT) too was presented in the same pink colour among the seven risky states, though its debt figure was not presented on the table.

The DMO offered explanation on the solvency exercise relative to IGR: “Given the fact that sustainability or otherwise of domestic debts are by best practice to be measured against the own revenue of the borrower, an analysis of the domestic debts of the states to their IGR was also undertaken.

“For this, the Debt Relief International (DRI) solvency threshold of 92 per cent to 167 per cent is applied. The result as shown in the table below outlines the need for the sub-national governments to grow their IGRs to reduce excessive pressure on their statutory allocations in the running of their governments and free up resources for other developmental projects.”

Six other states presented in yellow, signifying warning alert as they are close to attaining the solvency bar, are Edo, Akwa Ibom, Kwara, Ondo, Plateau and Taraba.

The remaining states presented in green all scored below the recommended solvency ratio of 92 per cent.

Source:

 http://businessnews.com.ng/2013/03/18/bayelsa-six-other-states-fail-dmos-solvency-test/?utm_source=&utm_medium=twitter&utm_campaign=bayelsa-six-other-states-fail-dmos-solvency-test

why should bayelsa and delta be in that list?

No SW state is‎​ in the list, how come??

Come oh!.....the IGR quoted for Ebonyi, is it really that much? Surely that figure is more than Imo and Anambra IGR respectively?

IGBO-SON:
Come oh!.....the IGR quoted for Ebonyi, is it really that much? Surely that figure is more than Imo and Anambra IGR respectively?

Per annum

Why on Earth will Bayelsa be indebted to the tune of over $1 billion, despite its huge allocations with regards to 13% derivation? Also, keep in mind that the state is one of the least populated in Nigeria.

Something is definitely fishy with Bayelsa's economic management team.

No be small thing oo! :oNo be small thing oo!

I'm proud of my state (Ekiti State). We know we don't have money but we are not heavily indebted

Despite it's oil wealth bayelsa is drowning in debt and does debt were mounted by it's kleptomanic governours for their pockets, one of which is being granted presidential padon!

Donald Duke almost ruined Cross River with huge unnecessary debt.

apoti: I'm proud of my state (Ekiti State). We know we don't have money but we are not heavily indebted

there's nothing wrong with debt if it canthe money borrowed is used properly and the prospect of repayment bright. There's no doubt a state like cross rivers has used it's money well and they're capable of funding their debt. Your state is really economicall and infastructurally dull(no offense) and there's nothing wrong in taking up some debt to build up that state and spur growth, cause your current local and federal income won't just cut it!

The SCUMBAG retardeenic GEJ has a lot of questions to answer but Bayelsans or ND generally seem to be pretty daf.t like their retardeenic president! Watch them come to his defence in a jiffy! It was the retardeen that helped Alamieyeseigha cover-up and finish his corruption and stealing sprees while he eventually brought in another governor to take over from him and now this Dickson guy! In all, all fingers must point in the direction of the retardeen if the Bayelsans care but I bet they don't give a damn too!

stine b: Donald Duke almost ruined Cross River with huge unnecessary debt.

shut up already, mtchew. what of the present sickler in the govt house

D method d DMO is using does not actually make sense when u consider dat many states make a lot of income from federal allocation . Comparing debt to total revenue is a more sensible method.

Up Kwara,sai maigida,sai fatah,sai Buky,sai Leader,sai AB$araki,sai AB$I. LLNP to our leader,mentor,father,god&boss of all bosses Excellency Senator Dr A.B.$araki. May ur enemies be like the enemies of King David

apoti: I'm proud of my state (Ekiti State). We know we don't have money but we are not heavily indebted

. It's amazing u're proud dat ur state is not indebted but if u go to those indebted states, they're beautiful, well developed with ultra modern houses and roads not mud buildings of ages.

since FCt's figures weren't there,something tells me it has the highest.


#just saying#

glimpse: since FCt's figures weren't there,something tells me it has the highest.


#just saying#

FCT isn't a state.

Symphony007: there's nothing wrong with debt if it canthe money borrowed is used properly and the prospect of repayment bright. There's no doubt a state like cross rivers has used it's money well and they're capable of funding their debt. Your state is really economicall and infastructurally dull(no offense) and there's nothing wrong in taking up some debt to build up that state and spur growth, cause your current local and federal income won't just cut it!

If you are very smart, you would have noticed I said "not heavily indebted". Do you understand what insolvency means at all. Every state in Nigeria is in debt, but the wise ones will not get 1712% insolvency score(like Bayelsa).

By the way, make sure you read Brighter Grammar 1,2,3 before you post on Nairaland again

Are you telling me that TA Orji has finished paying the debt accrued by OU Kalu

Easyfren: . It's amazing u're proud dat ur state is not indebted but if u go to those indebted states, they're beautiful, well developed with ultra modern houses and roads not mud buildings of ages.

You mean Bayelsa has all these I'm relocated ASAP to the ultra modern Bayelsa state

.

The question I need to ask maself as a yigbo is: has our oyel failed us'?
If u're poor intellectually, even if u were given all the wealth in ds world, u will use them to improvish urself. I tell u!
13% allocation, nothing to show!
Arrant nansense!

alow Bayelsa to run its crud for one year and lets see if in 2weeks this so called debt is not off their back...

Symphony007: there's nothing wrong with debt if it canthe money borrowed is used properly and the prospect of repayment bright. There's no doubt a state like cross rivers has used it's money well and they're capable of funding their debt. Your state is really economicall and infastructurally dull(no offense) and there's nothing wrong in taking up some debt to build up that state and spur growth, cause your current local and federal income won't just cut it!

Why take it pasonal with him and abuse his state? The guy is just happy with his state and he does not say anything to show that he has mocked ur state neither is he happy about the condition of others.

It sounds like they will dissolve when introduced into the financial acid solution though . . . Even Bayelsa with all the Billyions!

CFCfan: Why on Earth will Bayelsa be indebted to the tune of over $1 billion, despite its huge allocations with regards to 13% derivation? Also, keep in mind that the state is one of the least populated in Nigeria.

Something is definitely fishy with Bayelsa's economic management team.

The current debt status of d state was incurred by the former Governor(sylva), the guy murdered d state with pen and paper.

Dimipreye Silvia needs to be in jail.

I hope you guys know what igr means. The money from fg was not used to calculate this

Billyonaire: Dimipreye Silvia needs to be in jail.

u nid to be in a dungeon as well

CHESSBOARD: Are you telling me that TA Orji has finished paying the debt accrued by OU Kalu

So you believe TA Orji lame excuses for his poor performance?