Nigeria’s states are slowing down on loans due to a rise in revenue, mainly attributed to the removal of petrol subsidies by President Bola Tinubu.
According to the Debt Management Office (DMO), 27 states have cut their borrowing, with majority reducing their debt exposure over the past two years.
DMO stated that states’ monthly allocation from the consolidated revenue account has increased to an average of N1.6 trillion.
“Delta State tops the list with a 38.87% debt reduction, from N334.77 billion to N204.60 billion. Other states like Abia, Adamawa, and Akwa Ibom also significantly reduced their debts” noted by DMO.
Experts advised that part of the responsibilities of the debt management office is to ensuring loans are used for productive infrastructure and not just recurrent expenses.
