Business a.m.
The finances of Nigeria’s 36 states and the Federal Capital Territory are in a precarious state, as they collectively owe the federal government N1.72 trillion in budget support facilities.
The worrisome figures were revealed in a statement by Stanley Nkwocha, senior special assistant to the vice president on media and communications, titled “NEC endorses take-off of $617M i-DICE program across states.” presented during the 140th meeting of the National Economic Council (NEC), presided over by Vice President Kashim Shettima at the Aso Rock Villa, Abuja, recently.
Vice President Shettima provided a detailed breakdown of the states’ outstanding debt, revealing that the Federal Capital Territory owed N49.11 billion, while each of the 36 states carried a debt of N1.72 trillion.
This is not the first time the issue of the states’ debts has come up. At a previous meeting of the National Economic Council in November of 2023, the federal government had announced that it had stopped providing budget support loans as of July 2023. The federal government attributed this decision to the increase in the federation’s revenues.
The Vice President also provided a detailed breakdown of the country’s excess crude account (ECA), revealing that the account currently holds $473,754.57. He also stated that the amount in the stabilisation account is N33,808,342,662.88, while the current balance of the Natural Resources account stands at N113,925,600,918.68.
It is worth noting that the budget support facility was introduced in 2016, as a measure to provide financial relief to states facing budgetary constraints. At the time, many states were struggling to pay salaries and meet other financial obligations, and the facility was seen as a way to help alleviate the situation.
Meanwhile, an interim report presented by the ad-hoc committee, headed by Governor Hope Uzodinma of Imo State, shed light on the serious issue of crude oil theft. The report included data gathered through the deployment of surveillance technologies, which showed the extent of the problem.
Shettima expressed concern over the fact that many states had not yet submitted their inputs to the ad-hoc committee. He urged the remaining states to submit their inputs as soon as possible, so that the council could engage in more in-depth discussions on the issue.
