23 states obtain $462.81m loans by H1 2023

By the end of June, the bilateral loans to 23 Nigerian states totaled $462.81 million, an increase of 64.26 percent over the previous six months.

The majority of the loans were obtained from France, China, India, and other nations.

This was true despite the naira’s ongoing decline, which raised the cost of loans in dollars.

The rate cap on the naira at the official Investors and Exporters’ Window of the foreign currency market was ordered to be removed by Deposit Money Banks by the Central Bank of Nigeria in June 2023.

Also Read: DMO REVEALS NIGERIA’S TOTAL PUBLIC DEBT HIT N87.38TN FOR Q2 2023

Consequently, the naira fell from 471/$ to 750/$ as of the end of June 2023, and had continued to fall.

The increase in bilateral loans showed a growing appetite for this type of loans by state governors.

According to external debt data from the Debt Management Office, 23 states increased their borrowing from China (Exim Bank of China), India, France (Agence Francaise Development), Japan International Cooperation Agency, and Germany (Kreditanstalt Fur Wiederaufbua).

Most of the bilateral loans were owed to the AFD, with debt to France growing by 21.84 per cent to $306.32m as of the end of June. Chinese, Indian, and other loans grew by 415.79 per cent to $156.49m as of June 2023.

A breakdown of the states showed that Abia’s bilateral loans grew to $3.82m; Adamawa grew to $4.75m; Akwa Ibom grew to $3.82m; Bauchi grew to $3.82m; Cross River fell to $46.85m; Ebonyi took a first-time bilateral loan of $31.29m; Enugu’s debt fell to $4.75m; Imo’s grew to $26.04m; Jigawa secured a first-time loan of $864,535.16; Kaduna grew its loan to $91.47m; Kano grew to $24.39m.

Kebbi’s bilateral loan profile was $3.82m; Kogi was $3.82m; Kwara was $3.82m; Lagos was $130.67m; Niger was $9.14m; Ogun was $32.29m; Ondo was $8.50m; Osun was $8.95m; Oyo was $3.82m; Plateau was $8.50; and Sokoto was $3.82m.