By Becky Usman
As the Naira continues to weaken, the cost of servicing foreign debts for both the federal government and the states is rising.
According to data from the Debt Management Office (DMO), as of June 1, 2023, the total external debt for the 36 states and the Federal Capital Territory stood at $4.34 billion or N1.80 trillion, using an exchange rate of N414.58/$.
As of September 20, 2023, the value of this external debt in Naira has surged to N3.35 trillion at the current exchange rate of N771.27/$, resulting in an additional debt burden of N1.55 trillion within just three months.
The 10 states with the highest external debt burdens are:
- 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
This situation underscores the pressing need for Nigeria to generate more revenue to address its growing external debt challenges.