CBN States Position On Nigeria’s Debt Profile

The Federal Government spent $112.35m servicing external debt in January 2023, data from the Central Bank of Nigeria’s Weekly International Payments revealed.

According to the report, the amount spent in January was 146.17 per cent higher than the $45.64m spent in December 2022.

Reports had indicated that the Federation Account Allocation Committee shared N750.17bn among the three tiers of government in January 2023.

The figure represents a decrease of N240.02bn compared to the N990.19bn shared in December 2022, according to The PUNCH.

In 2022, Nigeria spent $2.4bn to service its external debt, which was a slight increase from the $2.11bn spent in 2021.

It was also reported that the Federal Government deducted over N78bn from allocations made to the states for external debt servicing.

This was according to data from the Federation Account Allocation Committee Disbursement reports published by the National Bureau of Statistics.

The deductions were made in 2022 from the allocations given to state governments from the Federation Account.

The federation account is currently being managed under a legal framework that allows funds to be shared under three major components: statutory allocation, Value Added Tax distribution and derivation principle.

The most hit state by the deductions was Lagos, with about N23.61bn deducted in 2022 for external debt servicing.

It was followed by Kaduna, with N10.25bn deducted, and Cross River with N7.56bn deducted.

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