Lagos domestic debt hits N311.7bn

Lagos state had a local debt stock of N311.7 billion as of December 31, 2016, according to the Debt Management Office.

The state, referred to as the commercial hub of Nigeria, had the highest local debt stock in the country during the period.

Domestic debt is the amount of money raised by any government denominated in local currency and from its own residents.

The debts consist of two components: bank and non-bank borrowing.

A document posted on the website of DMO disclosed that total local debts of the 36 states and the federal capital territory (FCT) was N2.958 trillion as of December 31, 2016.

Delta followed Lagos with N241.3 billion in local debts, while Akwa Ibom came third with N155.4 billion

The three states were followed by FCT with N152.8 billion debt stock, Osun with N147 billion, Rivers N142.4 billion and Bayelsa N140.1 billion.

The document also said that the lowest indebted state was Anambra with N3.9 billion, followed by Yobe with N13.5 billion and Jigawa with N19 billion.

Anambra state had the lowest domestic figure of N3.5 billion in 2015 and still maintained the lowest figure in 2016.

Domestic loans are issued through government debt instruments such as Nigerian Treasury Bills, Nigerian Treasury Certificates, Federal Government Development Stocks, Treasury Bonds, Ways and Means Advances.

In 2015, the federal government’s domestic debt stood at $47.05 billion or N7.9 trillion, while those of the states stood at $10.97 billion or N1.708 trillion.

Federal government’s domestic debt is made up of N4.792 trillion bonds, N2.815 trillion treasury bills and N296.2 billion treasury bonds.

According to figures published by the DMO, the total debt stock of the federal government and the 36 states of the federation including the federal capital territory amounted to N11.243 trillion or $67.726 billion.

States and the FCT as of December 31, 2014, had a domestic debt profile of N1.707 trillion or $10.967 billion.