Contrary to the guidelines of the Debt Management Office on subnational borrowing, 23 states of the federation exceeded their borrowing limits in 2015, the Fiscal Responsibility Commission has said.

In a report on the states and indebtedness, the FRC said Lagos, Kaduna, Cross River, Gombe, Ekiti, Edo, Ondo and Imo states had borrowed more than 50 per cent of their annual statutory allocations by 2015.

Other states in the same boat are Zamfara, Adamawa, Oyo, Abia, Ogun, Taraba, Kebbi, Enugu, Bauchi, Nasarawa, Kano, Benue, Kwara, Katsina and Sokoto.


The FRC added that when total revenue (gross statutory allocation plus Internally Generated Revenue) was used as the yardstick for measuring the level of indebtedness of the states, a total of 20 states borrowed more than their total revenues in 2015.

The report read in part, “In the light of the DMO’s Guidelines on Debt Management Framework, particularly as it pertains to debt sustainability, the debt to income ratio of states should not exceed 50 per cent of the statutory revenue for the preceding 12 months.


“In effect, state governments have a subsisting, though not in line with FRA, 2007, loan policy, which requires states governments not to owe more than 50 per cent of their statutory revenue for the previous 12 months.

“The Federal Government, on the other hand, is expected not to accumulate debt more than 40 per cent of the national Gross Domestic Product. Bearing this in mind, 23 states exceeded the threshold of 50 per cent of their gross/net statutory allocations during the year 2015.

“However, out of the 23 states, only 20 states exceeded the threshold of 50 per cent of their total revenue – gross statutory allocation plus Internally Generated Revenue.”

The report also stated, “Lagos exceeded the threshold of 50 per cent of its gross statutory allocation by well over 300 per cent; Kaduna, Cross River, Gombe, Ekiti, Edo, Ondo, Oyo, Abia and Ogun exceeded the 50 per cent of their gross statutory allocations by well over 50 per cent but less than 100 per cent.


“Imo, Zamfara, Adamawa, Taraba, Kebbi, Enugu, Bauchi, Nasarawa, Kano, Benue, Kwara, Katsina, and Sokoto states exceeded the 50 per cent of their gross statutory allocations by less than 50 per cent.

“On the basis of total revenue rather than gross statutory allocation, 20 states exceeded the threshold of 50 per cent. Of the 23 states that exceeded the threshold of their gross/net statutory allocations, Kwara, Katsina and Sokoto states did not exceed the 50 per cent threshold of their consolidated debt to total revenue.

“From 2012 to 2015, five states consistently exceeded the threshold of 50 per cent of their gross statutory allocations. The states are Kaduna, Lagos, Ogun, Cross River and Osun.”


https://www.google.com.ng/amp/punchng.com/23-states-exceeded-borrowing-limits-frc/amp/


Lalasticlala

Lagos and Ogun should be able to pay back. I don't know about the rest

Ogun's annual statutory allocation has always been low anyway and that's what Amosun has been fighting for

Heck! Ogun state’s IGR, according to the stats was 127 percent higher than the allocation it received in 2016

while the IGR of Lagos state was 169 percent higher than its 2016 allocation.

While I believe Lagos and Ogun can pay back, this should serve as a wake up call forcing them to be financially healthy. Same goes for other
SW states

Surprisingly, Borno, the state worst hit by Boko Haram is not on this list

P.S: These are 2015 stats, but I believe not much has changed since then

“From 2012 to 2015, five states consistently exceeded the threshold of 50 per cent of their gross statutory allocations. The states are Kaduna, Lagos, Ogun, Cross River and Osun.”

We were telling them that he-goat, AriGBESEsola, has borrowed beyond limit. Hence, the reason for the drastic reduction in allocation received by the state.
But the Governor kept on dishing lies to the zombie followers that Goodluck Jonathan hated him and Osun State and Jonathan was intentionally withholding the state's fund by reducing the allocation belonging to the state.

Jetleeee:
Lagos, Ogun, and Rivers can pay back. I don't know about the rest

These states you mentioned are very capable economically. My concern is more on those civil servant's states with zero economic activities.

ruggedized1:


These states you mentioned are very capable economically. My concern is more on those civil servant's states with zero economic activities.

Yupp....the other states are really fooked. But they can start by trimming down their civil services. Some of them have too many ghost workers. They are actually borrowing money to pay ghost workers

Some of these states probably thought oil money would flow foreeeever like some fairy tale movie lol . Oil money sweet dieeee. The signs were already showing years before oil prices went down. Now, they are in deeeeeeep shyyyyyt!

I really don't know how they would recover from this.

Jetleeee:
Lagos, Ogun, and Rivers can pay back. I don't know about the rest

Ogun's annual statutory allocation has always been low anyway and that's what Amosun has been fighting for

Heck! Ogun state’s IGR, according to the stats was 127 percent higher than the allocation it received in 2016

while the IGR of Lagos state was 169 percent higher than its 2016 allocation.

Surprisingly, Borno, the state worst hit by Boko Haram is not on this list

My own governor simply borrows from banks and diverts same to develop his private farm!

The man is a total mishap of nature and takes refuge behind religion to ward off the barrage of criticism that trail every move he makes.

Benue has never had it so bad.

I don beg una make una come buy am for N1,750 sef, una refuse.

Smh.

omenka:
My own governor simply borrows from banks and diverts same to develop his private farm!

The man is a total mishap of nature and takes refuge behind religion to ward off the barrage of criticism that trail every move he makes.

Benue has never had it so bad.

I don beg una make una come buy am for N1,750 sef, una refuse.

Smh.

Breh! How much be your last price? My friend, Omofunaab2 wants to buy

Jetleeee:




Breh! How much be your last price? My friend, Omofunaab2 wants to buy

Make una just bring 1k come take am abeg.

You will never see the new "China of Africa" there on that list, I am talking of no other State than Anambra the real shining light State. Thanks to Former Governor Peter Obi's lifeline. I pray that Obiano will continue in that trend.

Pity Benue people ooh dey are irredeemable and 1st time BOBO Yahaya of kogi name no appear hmm mm mm mm mm just having mercy on their electorates

Jetleeee:
Lagos, Ogun, and Rivers can pay back. I don't know about the rest

Ogun's annual statutory allocation has always been low anyway and that's what Amosun has been fighting for

Heck! Ogun state’s IGR, according to the stats was 127 percent higher than the allocation it received in 2016

while the IGR of Lagos state was 169 percent higher than its 2016 allocation.

While I believe Lagos and Ogun can pay back, this should serve as a wake up call forcing them to be financially healthy. Same goes for other
SW states

Surprisingly, Borno, the state worst hit by Boko Haram is not on this list

How can Ogun pay back when it runs a negative cash flow system? It was bailed out a couple of times. It owed workers prior to bailout. It spends more than it generates. This is a recipe for insolvency

omenka:
Make una just bring 1k come take am abeg.

Put am for Olx if you dey serious

BigIyanga:

How can Ogun pay back when it runs a negative cash flow system? It was bailed out a couple of times. It owed workers prior to bailout. It spends more than it generates. This is a recipe for insolvency

Actually, Ogun never owed workers. There was some confusion that later had to be cleared tho as per deductions and pensions

Per the emboldened, All Nigerian states bar the states not executing projects spend more than they generate. FA is low, IGR is low. Some states are paying salaries alone so they don't fall inside the debt pit

BUT, there are some that can actually pay back by just making smart financial moves, cos they generate enough money. Ogun state is one of those states.

Ekiti is in that list thanks to Fayemi for almost putting the state on olx

Anyway Oshoko is doing enough to clear the debt

Never again!

Jetleeee:
Lagos, Ogun, and Rivers can pay back. I don't know about the rest

Ogun's annual statutory allocation has always been low anyway and that's what Amosun has been fighting for

Heck! Ogun state’s IGR, according to the stats was 127 percent higher than the allocation it received in 2016

while the IGR of Lagos state was 169 percent higher than its 2016 allocation.

While I believe Lagos and Ogun can pay back, this should serve as a wake up call forcing them to be financially healthy. Same goes for other
SW states

Surprisingly, Borno, the state worst hit by Boko Haram is not on this list

Where did u get Rivers from?

wow no texas and arizona

NigerDeltan:


Where did u get Rivers from?

From Pluto

Modified: I made a mistake, and I've corrected it

Jetleeee:
Lagos, Ogun, and Rivers can pay back. I don't know about the rest

Ogun's annual statutory allocation has always been low anyway and that's what Amosun has been fighting for

Heck! Ogun state’s IGR, according to the stats was 127 percent higher than the allocation it received in 2016

while the IGR of Lagos state was 169 percent higher than its 2016 allocation.

While I believe Lagos and Ogun can pay back, this should serve as a wake up call forcing them to be financially healthy. Same goes for other
SW states

Surprisingly, Borno, the state worst hit by Boko Haram is not on this list

Ehhenñ!!
So if u were to lend nijja states money. U go go lend to Borno abii

Jetleeee:


Actually, Ogun never owed workers. There was some confusion that later had to be cleared tho

Per the emboldened, All Nigerian states bar the states not executing projects spend more than they generate. FA is low, IGR is low. Some states are paying salaries alone so they don't fall inside the debt pit

BUT, there are some that can actually pay back by just making smart financial moves, cos they generate enough money. Ogun state is one of those states.

When shyte hit the fan, you will retract ur statement

Why's Kogi not on the list?

erico2k2:

When shyte hit the fan, you will retract ur statement

Make we dey watch

Ratello:
You will never see the new "China of Africa" there on that list, I am talking of no other State than Anambra the real shining light State. Thanks to Former Governor Peter Obi's lifeline. I pray that Obiano will continue in that trend.

Anambra the light of the nation!!

Jetleeee:


From Pluto

It is a valid question.

You made a mistake. Shoulda been Cross River.

-Lord

IkpuMmiri:


Put am for Olx if you dey serious

This your moniker sef

Mostly APC states

Jetleeee:


Make we dey watch

Politicians DO NOT PAY BACK LOANS,
They simply pass it on to the next government.If he could afford to pay he wont Borrow i n the 1st place. Im surprised Delta,Bayelsa and Rivers are not on the List.Lagos exceeded by nearly or more than %300,you guys in Lagos should be asking some serious questions citing the huge IGR you have.

LordAdam16:


It is a valid question.

You made a mistake. Shoulda been Cross River.

-Lord

You're right breh. I'll edit asap

Osun is not even there, yet they will be calling my governor "Onigbese"

Abi! There is something I'm not understanding

erico2k2:

Politicians DO NOT PAY BACK LOANS,
They simply pass it on to the next government.If he could afford to pay he wont Borrow i n the 1st place. Im surprised Delta,Bayelsa and Rivers are not on the List.Lagos exceeded by nearly or more than %300,you guys in Lagos should be asking some serious questions citing the huge IGR you have.

Government is a continuum uno. If the person in power doesn't complete the payment, his successor would take off from where he stopped

Neyoor:
Osun is not even there, yet they will be calling my governor "Onigbese"

Iffa hear say Osun no dey there . Check again