₦airaland Forum

Nigeria government and it's states owns alot of foreign debt, and as naira crashes, those foreign debt will keep increasing automatically.

Naira Crash Against US Dollar Adds Over N1.5trn to States External Debts, Lagos Worst.


With the value of the Naira seriously depreciating against the dollar, external debts of Nigeria, including 36 states, are becoming very expensive to service
10 states led by Lagos states account for a significant chunk of the total external debts held by states

Debt remains one of the biggest fiscal burdens of Nigeria, and more revenue is now needed to pay back
The external debt load of the 36 states and the Federal Capital Territory have significantly increased in naira terms.

This is thanks to the continued depreciation of the Nigerian currency at the official and unofficial foreign exchange markets.

Data from the Debt Management Office (DMO) showed that the total external debt stock of 36 subnational governments and the Federal Capital Territory, Abuja, stood at $4.34 billion or N1.80 trillion using the exchange rate of N414.58/$ as of June 1, 2023.

Today, September 20, 2023, the value of the external debt in naira terms has increased to N3.35 trillion at the current exchange rate of N771.27/$.

This represents an addition of N1.55 trillion in debt due to naira depreciation in just 3 months.

It is even worse if the current black market rate of N980 a dollar is used to calculate the external debt stocks of Nigerian states.

10 States with the highest debt burden
Lagos - $1.26 billion
Kaduna - $569.37 million
Edo - $258.40 million
Cross River - $153.17 million
Bauchi - $170.44 million
Adamawa - $100.92 million
Anambra - $105.58 million
Enugu - $120.67 million
Enugu- $111.62 million
Ondo - $80.84 million

BiafraInc:
Fault of Simon Ekpa, IPOB and sit at home. Let's blame Simon Ekpa since we can't find any other thing or person to blame.

ThomasGitHub:
[b]No One Is Safe: Naira Crash Against US Dollar Adds Trillions Of Debt To All The 36 States In Nigeria.


https://www.legit.ng/business-economy/economy/1554919-list-nigerian-states-highest-external-debt-weak-naira-adds-burden/

fixedhollies:
Wahala… The APC woes continued from Buhari to Tinubu. I really wish there is a magic we can do. Unfortunately it seems our leaders are hopelessly ignorant.

nicolasakins:
While will Enugu be written twice OP?

eldoradoxx:
We warned narrow minded Nigerians right from time, never vote APC, it is a party of people who are meant to be in opposition permanently because it is a conglomerate of politicians who understand nothing, absolutely nothing about running a country, but ethnicity and religion would not allow an average Nigerian have qualitative mental evaluation of issues before making a choice of whom to vote for. In all the elections since 2015, Nigerians failed to make the right choices. Dollar that was 170-180 to a Dollar in May 2015 after the much talked about 16 years of PDP government is now over 1000 to a dollar in just 4 months of the regime of a man they told us built Lagos and turned the place into a land of milk and honey. Una never see suffering sef

nicolasakins:
While will Enugu be written twice OP?

primeache:
Good observation.
I guess one for the State and the other for the Capital .

Op. Correct the mistakes

Burob:
Console yourself in your failure, because Abubakar Atiku, Gringory Obi’s Master that you are supporting today was not a member of the APC?

It is the Federal Government’s responsibility to source foreign exchange for you lazy People, your own is just to sit & whine on the wall like Humpty Dumpty?

Can you mention how much forex yourself or state governments have generated in helping the Naira fight the greenback?