A review of the budget performance reports across states has shown that 25 states spent the sum of N149.8billion for debt servicing in the first three months of 2024.
Debt Servicing charges arise as a result of costs incurred from loans obtained by states. Higher loans have meant higher debt servicing figures incurred by these states.
The review by SaharaReporters on Monday showed that Adamawa spent the sum of N7billion, while Bayelsa’s expenditure stood at N8.1billion. Meanwhile, Gombe spent N6.8billion on debt servicing.
In Cross River state, the sum of N6.9 billion was spent on debt servicing while the item gulped N16billion in Kaduna.
For Katsina, its total expenditure on debt servicing in the first three months of 2024 stood at N4.2billion, while Oyo state expenditure was N9.5billion. Osun spent N3.8billion, Ekiti, N3.7billion, N5.3billion, Lagos N27.3billion and Kwara N2.3billion.
For Kogi, debt servicing expenditure stood at N6.9billion, Nasarawa N1.2billion, Taraba N7.2billion, Bauchi N7.6billion and Borno N3.6billion.
Further review shows that in Jigawa, the total debt servicing figure stood at N882million, Sokoto N3.5billion, Zamfara N1.4billion, Kebbi N1.124billion and Akwa Ibom N9.7billion.
While debt servicing in Anambra state gulped N1billion, Abia expenditure was N563 million, Enugu N1.8billion and Ebonyi N2.5billion.
Of the states reviewed, Kano did not spend any money on debt service in the first three months of 2024, Delta also spent zero naira.
SaharaReporters reviewed expenditure on critical sectors by select states. Analysis shows that the states spent more on debt servicing than expenditure on critical sectors.
For instance, in Kaduna state, while the sum of N16 billion was spent on debt servicing in the first quarter of 2024, N1.2 billion was spent on internal security, N14 billion was the expenditure for Public Works and Infrastructure, Urban Development and Housing took N1.3 billion.
Other critical sectors like education also received less financial expenditure unlike debt servicing. The figure for education sector expenditure in the first three months of 2024 stood at N10.9 billion.
In Katsina state, the situation is not different with the ministry of water resources expenditure standing at N300 million as against the N4.2 billion spent on debt servicing. The expenditure on Basic and Secondary Education stood at N3.3 billion, that of health was N2.5 billion.
While Cross River State spent N6.9 billion on debt servicing, it spent far less on critical sectors, in the first three months of 2024. For instance, the Works ministry took only N652 million, Water Resources N52 million.
Gombe is not also left out, spending the sum of N6.8 billion on debt servicing and spending N26 million on its ministry for science, technology and innovation, N1.6 billion on the ministry for water resources, environment and forest resources.
With millions of poor persons, there have been concerns over Nigerian states expenditure on debt servicing. Already, experts have warned over the reliance on loans by Nigerian states, noting that this could impede development and divert much needed funds to debt servicing.