Connect with us

Headline

13 States To Borrow Fresh N380bn In 2025 [SEE LIST]

Published

on

No fewer than 13 state governments have projected an Internally Generated Revenue of N613bn for 2025.

The states also planned to secure fresh loans totaling N380bn in the upcoming year, The PUNCH’s investigation has revealed.

This comes despite a 40 per cent increase in the states’ statutory allocations from the Federation Account.

Advertisement

In the first half of 2024, about 22 states collectively borrowed N446bn, with debt servicing consuming a significant portion of their IGR.

These loans have pushed the total debt stock of Nigerian states to N11.47tn as of June 30, 2024.

READ ALSO: 13-year-old Boy Sues UK Parents For ‘Deportation’ To Africa Over ‘Gang Involvement’

Advertisement

An analysis of public debt reports from the Debt Management Office (DMO) shows a 14.57 per cent increase from the N10.01tn recorded in December 2023.

The increase was primarily driven by a sharp rise in external debt, and exacerbated by the naira’s devaluation.

External debt for the states and the Federal Capital Territory climbed from $4.61bn to $4.89bn, reflecting a 6.14 per cent increase, while domestic debt saw a significant decline of 27.12 per cent, dropping from N5.86tn to N4.27tn.

Advertisement

In naira terms, however, foreign debt surged by a staggering 73.46 per cent, rising from N4.15tn to N7.2tn, following the devaluation of the naira from N899.39/$1 in December 2023 to N1,470.19/$1 by June 2024.

READ ALSO: UK Net Migration Falls By 20% Amid Visa Restrictions

States and the FCT accounted for 8.54 per cent of Nigeria’s total public debt of N134.3tn as of June 2024, down from 10.29 per cent in December 2023, despite an increase in their nominal debt levels.

Advertisement

According to their 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Papers, 13 states plan to borrow a combined total of N380bn to finance budget deficits in 2025.

These states include Adamawa, Kano, Anambra, Bauchi, Borno, Ebonyi, Gombe, Jigawa, Kebbi, Kaduna, Akwa Ibom, Niger, and Oyo.

Adamawa, which did not take any loans this year, plans to borrow N31.5bn next year while projecting an IGR of N22.7bn.

Advertisement

READ ALSO: Peter Obi Speaks As Port Harcourt Refinery Begins Production

This was as Kano, which borrowed N6.4bn in the first half of 2024, projects fresh borrowings of N11bn and an IGR of N47.5bn for 2025.

Anambra targets a financing estimate of N18.5bn, including loans sourced through fundraising activities.

Advertisement

Despite taking loans of N19.2bn this year, Bauchi States also plans to take fresh loans of N71bn, with an IGR target of N47.2bn.

Borno borrowed N20bn this year but plans to raise N53bn through loans next year, targeting N30bn in IGR.

READ ALSO: 17 People Missing As Tourist Boat Sinks In Red Sea

Advertisement

Similarly, Niger State borrowed N34bn in 2024 and projects N31bn in loans next year, with an IGR target of N74bn.

Other loan projections include N35bn for Kebbi, N11.6bn for Kaduna, N8.5bn for Akwa Ibom, N13bn for Ebonyi, N8bn for Jigawa, N76.8bn for Oyo, and N11.7bn for Gombe. Their respective IGR targets for 2025 are N25.5bn, N68bn, N62bn, N26.5bn, N65.9bn, N67bn, and N6.8bn.

An economic expert, Paul Alaje, recently warned that debt servicing and accumulating loans could stifle economic development at the sub-national level.

Advertisement

He emphasised that the significant debts inherited from previous administrations have hindered growth and stressed the need for thorough scrutiny of state borrowing practices and the projects financed with these loans.

 

Advertisement

Headline

Welcome Home, Israel Confirms Return Of 20 Hostages From Gaza

Published

on

Israel said that the last 20 living hostages released by Hamas on Monday had arrived in the country.

“Welcome home,” the foreign ministry wrote in a series of posts on X, hailing the return of Matan Angrest, Gali Berman, Ziv Berman, Elkana Bohbot, Rom Braslavski, Nimrod Cohen, David Cunio, Ariel Cunio, Evyatar David, Guy Gilboa Dalal, Maxim Herkin, Eitan Horn, Segev Kalfon, Bar Kuperstein, Omri Miran, Eitan Mor, Yosef Haim Ohana, Alon Ohel, Avinatan Or and Matan Zangauker.

READ ALSO:Trump Gives Update On Israel, Hamas Peace Deal

Advertisement

AFP

 

Advertisement
Continue Reading

Headline

20 Members Of Gang Blacklisted By US Escape Guatemala Prison

Published

on

Twenty members of a gang designated a “foreign terrorist organisation” by the United States have escaped from detention in Guatemala, a prison chief said Sunday.

The members of the Barrio 18 gang “evaded security controls” at the Fraijanes II facility, prison director Ludin Godinez said at a news conference.

He received “an intelligence report” on Friday warning about the “possible escape” from the prison, which is southeast of the capital, Guatemala City.

Advertisement

Godinez said they were investigating possible acts of corruption.

READ ALSO:China’s Trade Surges Despite US Tariff Threats

Washington last month blacklisted Barrio 18, an El Salvador-based gang which has a reputation for violence and extortion, as part of its crackdown on drug trafficking.

Advertisement

The US embassy in Guatemala condemned the prison escape as “utterly unacceptable.”

“The United States designated members of this heinous group as the terrorists they are and will hold accountable anyone who has provided, provides, or decides to provide material support to these fugitives or other gang members,” the embassy said on X.

It called on the Guatemalan government to “act immediately and vigorously to recapture these terrorists.”

Advertisement

READ ALSO:US Threatens To Sanction Countries That Vote For Shipping Carbon Tax

According to Interior Minister Francisco Jimenez, there are about 12,000 gang members and collaborators in Guatemala, while another 3,000 are in prison.

The country’s homicide rate has increased from 16.1 per 100,000 inhabitants in 2024 to 17.65 this year, more than double the world average, according to the Centre for National Economic Research.

Advertisement

According to the Salvadoran government, the gangs Barrio 18 and Mara Salvatrucha, better known as MS-13, are responsible for the deaths of about 200,000 people over three decades.

The two gangs once controlled an estimated 80 percent of El Salvador, which had one of the highest homicide rates in the world.

Advertisement
Continue Reading

Headline

South Africa Bus Crash Kills 40 Including Malawi, Zimbabwe Nationals

Published

on

At least 40 people, including nationals of Malawi and Zimbabwe, were killed when a passenger bus rolled down an embankment in South Africa, a provincial transport minister said Monday.

The bus travelling to Zimbabwe crashed around 90 kilometres (55 miles) from the border on Sunday after the driver apparently lost control, Limpopo province transport minister Violet Mathye said.

“They are still working on the scene, but 40 bodies have already been confirmed to date,” Mathye told the Newzroom Afrika channel. The dead included a 10-month-old girl, she said.

Advertisement

READ ALSO:South African Court Finds Radical Politician Malema Guilty On Gun Charges

Thirty-eight people were in hospital and rescuers were searching for other victims, she told eNCA media.

The bus was travelling from the southern city of Gqeberha, around 1,500 kilometres away, and its passengers included Malawians and Zimbabweans who were working in South Africa. The crash may have been caused by driver fatigue or a mechanical fault, the minister said.

Advertisement

South Africa has a sophisticated and busy road network with a high rate of road deaths, blamed mostly on speeding, reckless driving and unroadworthy vehicles.

AFP

Advertisement
Continue Reading

Trending