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HomeNewsTWENTY THINGS YOU NEED TO KNOW ABOUT KADUNA STATE DEBT PROFILE

TWENTY THINGS YOU NEED TO KNOW ABOUT KADUNA STATE DEBT PROFILE

TWENTY THINGS YOU NEED TO KNOW ABOUT KADUNA STATE DEBT PROFILE

1. As at 31st December, 2022, Kaduna State had a total public debt of N348,864,897,661. (Source: MTEF, 2024-2026)

2. This is made up of Domestic Debt of N83,294,928,661 and Foreign Debt of N265,569,969,000 as at 2022.

3. According to the Debt Management Office (DMO) report, domestic debt as at 31st March, 2023, has reduced to N80,611,662,734.10.

4. While foreign debt is $573,743,456.660

5. The State is ranked the 2nd most indebted state in Nigeria, after Lagos, in terms of foreign borrowing.

6. Using the 2020 population estimate of 9.4 million, the debt per capita for Kaduna State as at 2022 was about N37,113.

7. Equally, it is only second to Cross River as the highest indebted State to China, given through China’s Exim Bank – owing $13,098,397 as at the 31st of December, 2022.

8. The Economic Intelligence Unit (EIU) 2023 Macroeconomic Outlook projects that by the end of this year our debt stock will be N385bn.

9. Foreign debt makes up the bulk of Kaduna’s total debt stock with the foreign debt to domestic debt ratio being 3.24:1 – as foreign debt is 3 times more than its domestic debt stock.

10. Solvency ratio as at 2022 shows the State is within the 150% threshold for Total Domestic Debt/IGR.

11. The State has surpassed the 150% threshold for Total External Debt/Gross FAAC, then at 300.08%.

12. Similarly, the State has also gone above the threshold of 150% for Total Public Debt/Total Recurrent Revenue, at 210.74%.

13. In 2023, the State serviced its total public debt with N16,502,746,93. This was made up of N4,297,956,654 for Domestic Debt Service and Foreign Debt Service of N12,204,790,279.

14. In 2023, the budgeted total debt service is N35,442,606,826. The debt service is made up of Foreign Loan and Interest Repayment of N25,849,855,164 and Domestic Loan and Interest Repayment of N9,592,751,662.

15. In 2023, the State also seeks to borrow another external loan of N61,662,182,999 to cover part of the budget deficit. Already,

16. Federal government has borrowed the State N2,400,000,000, which is 48% of the N5,000,000,000 palliative intervention.

17. The draft MTEF recently released, shows the government, in 2024, is proposing to borrow another N22,121,483,462.

18. Currently, the State is highly exposed to exchange rate volatilities due to the huge borrowing in dollars.

19. The external loans are majorly sourced from multinational institutions such as the World Bank, International Monetary Fund (IMF), Islamic Development Bank (IsDB), African Development Bank (AfDB) etc.

20. The State government obtained these loans through Subsidiary Loan Agreement facilitated by the Federal Ministry of Finance, Budget and National Planning.

Lets engage, ask the right questions and hold the government accountable.

Yusuf Ishaku Goje
Active Citizen

OGPKaduna
#CALPED

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