Two Nigerian States Have Highest Debt Exposure to China as Total Debt Stock Hits $100 Billion

Two Nigerian States Have Highest Debt Exposure to China as Total Debt Stock Hits $100 Billion

  • Two Nigerian states of Cross River and Kaduna have highest debt exposure to China and other International lenders
  • According to DMO, the states owe about $33.5 million to the international lenders and their domestic debts are not known
  • This is coming on the heels of stakeholders at a conference decrying excessive borrowing by the Nigerian government

As of November last year, two Nigerian states have the highest debt exposure to China, and Nigeria's debt to the Asian country has hit about $3.4b billion.

According to data from Debt Management Office (DMO), the states of Kaduna and Cross River has the highest debt to China, given through China's Exim Bank.

Buhari, National Debt, Chinese loans
President Muhammadu Buhari Credit: State House
Source: Facebook

Top lenders to the states

The states are also exposed to lenders like Japan International Corporation (Jica) India and KFW Development Bank.

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The two states owe a total of $33,475,847, with Cross River State owing the highest with $20,676,994 and Kaduna with $12,796,853.

But information from DMO says Nigeria's total debt profile now stands at about $100 billion as of March 2022.

The debt comprises both external and domestic debts.

The DMO states that as of March 2022, external debts stand at $39 billion and domestic debt at $60 billion.

Stakeholders express concern

The Guardian reports that stakeholders at the African Conference on Debt and Development (AFCODD) raised concerns about Nigeria's rising debt profile.

The stakeholders are particularly concerned despite Section 42 (1) of the Fiscal Responsibility Act, 2007 saying that the President shall, within 90 days from the commencement of the Act and with advice from the Minister of Finance, subject to the approval of the National Assembly set overall limits for the amounts consolidated debt of the three tiers of government.

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The stakeholders said since the passage of the Fiscal Responsibility Act and the debt limits of the federal, state and local governments, President Buhari is yet to set the debt limit for the country.

Debt Stock: Nigeria's most indebted geopolitical zones in 2022 reported that according to data from the Debt Management Office (DMO), Nigeria's total debt stock has hit over N41 trillion as of March 2021.

The breakdown of the debt, tabulated by shows that the various states in Nigeria contribute immensely to the national debt stock.

According to reports, Nigeria's total public debt stock rose from N39.56 trillion in December 2021 to N41.60 trillion, $100.07 billion in the first three months of 2022, January to March, the Debt Management Office (DMO) revealed yesterday.


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