Findings have revealed that the latest subsidy palliative loans may drive 36 states’ borrowing from the Federal Government to N1.34tn.
According to The PUNCH, the debt under the budget support facility of the Federal Government comprised a total of N614 billion in 2019, followed by an additional debt of N656 billion in 2021. Furthermore, a new debt of N69.12 billion was incurred this year as a subsidy palliative.
The debt in question is expected to exhibit dissimilarities when compared to the internal debt of N5.48tn held by states as of March 2023, as well as the external debt of $4.4bn recorded by the Debt Management Office as of December 31, 2022.
Findings indicated that as of the year 2019, the cumulative debt owing by the 36 states to the Federal Government through the budget assistance loan facility amounted to N614 billion.
During a National Economic Council briefing in August 2019, the former Minister of Finance, Budget, and National Planning, Zainab Ahmed, said that the Federal Government has allocated a cumulative sum exceeding N614 billion to 35 states.
