About 13 states of the federation are currently under a heavy debt burden that is more than 50 per cent of their 12-month revenues which contravened guidelines of the Debt Management Office (DMO), latest statistics released by the Fiscal Responsibility Commission (FRC), has revealed.
Lagos state topped the list of debtors with net revenue of N119. 02bn and a total debt burden of N968. 16bn. Its debt to revenue ratio currently stands at 814.41 per cent, meaning it has gone beyond the DMO limit by 763.41 per cent.
Lagos was followed by Osun State with a debt to revenue ratio of 781.71 per cent. While it had net revenue of N22.84 billion, its total public debt stood at N178.52 billion. This means that the state had a debt to revenue ratio of 781.71 per cent and had gone beyond the limit set by the DMO by 731.71 per cent.
Other top states in terms of high debt to revenue ratios include Cross River, Ekiti, Ogun, Plateau, Edo, Bauchi, Adamawa, Kaduna, Nasarawa, Imo and Oyo States. The Federal Capital Territory Administration also made the list of top sub national governments with high debt to revenue ratio.
Cross River State had net revenue of N36.95 billion, a debt of N225.91 billion, debt to revenue ratio of 611.31 per cent. It, therefore, had gone beyond the limit by 561.31 per cent.
Ogun State had net revenue of N39.64 billion, a debt ofN130.42 billion and a debt to revenue ratio of 328.97 per cent. The state, therefore, had passed the limit set by the DMO by 278.97 per cent.
For Plateau State, the revenue stood at N43.89 billion while the debt stood at N109.23 billion. The debt to revenue ratio stood at248.9 per cent while it had gone beyond the limit by 198.9 per cent.
Edo had net revenue of N69.17 billion, total debt ofN171.63 billion and debt to revenue ratio of 248.13 per cent. It over stepped the limit by 198.13 per cent.
For Bauchi, the revenue stood at N54.02 billion while the debt stood at N133.48 billion; thereby giving debt to revenue ratio of 247.1 per cent. The state exceeded the limit by 197.1 per cent.
Adamawa had revenue of N49.51 billion, a debt of N119.68billion and a debt to revenue ratio of 241.73 per cent. It exceeded the limit by 191.73 per cent. Kaduna had revenue of N68.84 billion, a debt of N154.4billion and a debt to revenue ratio of 224.26 per cent. It exceeded the limit by 174.26 per cent.
For Nasarawa, the revenue stood at N47.55 billion while the debt stood at N103.53 billion. The state exceeded the 50 per cent ratio by167.73 per cent. Imo had revenue of N54.18 billion, a debt of N117.05 billion and a debt to revenue ratio of 216.04 per cent and therefore exceeded the limit by 166.04 per cent.
Oyo had revenue of N59.29 billion, a debt of N123.75billion and a debt to revenue ratio of 208.72 per cent. It exceeded the limit by 158.72 per cent.
On the other, the report stated that states like Yobe, Jigawa, Katsina, Sokoto and Bayelsa have the least debt to revenue ratios.
Yobe had revenue of N36.21 billion, a debt of N52.87billion and a debt to revenue ratio of 68.48 per cent. It exceeded the limit by18.48 per cent. For Jigawa, the revenue stood at N44.99 billion, the debt stood at N60.33 billion and the debt to revenue stood at 74.58 per cent. It exceeded the limit by 24.58 per cent.
Katsina had revenue of N61.65 billion, a debt of N49.93billion and a debt to revenue ratio of 80.98 per cent. It exceeded the limit by30.98 per cent.
For Sokoto, the revenue stood at N54.46 billion, the debtN50.64 billion and the debt to revenue ratio, 92.99 per cent. It exceeded the ratio by 42.99 per cent. Bayelsa had revenue of N153.1 billion, a debt ofN147.43 billion and a debt to revenue ratio of 96.29 per cent. The state exceeded the limit by 46.29 per cent.
