Writer: ABHULIMEN THERESA
According to the National Bureau of Statistics (NBS), Lagos State, which is Nigeria’s economic center, holds the country’s largest external debt, amounting to $1.5 billion.
The debt is made up of loans from the World Bank, the African Development Bank, and other international creditors.
The NBS report, which was released on September 17, 2023, showed that Lagos State’s external debt is more than double the external debt of the next most indebted state, Kaduna State.
Kaduna State has an external debt of $586.77 million, followed by Edo State with $268.31 million.
The report also showed that Nigeria’s total external debt stood at $16.61 trillion as of June 2023. This represents a 19% increase from the same period in 2022.
The NBS report has raised concerns about Lagos State’s debt sustainability. Some analysts have warned that the state’s debt burden could become a major problem if it is not managed properly.
However, the Lagos State government has defended its borrowing, saying that the loans are being used to finance infrastructure projects that will benefit the state’s economy in the long run.
The government has also said that it is committed to servicing its debt obligations and that it has a good track record of doing so.