Concerns Over Lagos, South-West States’ Huge Debts

A civil society organisation, Brain Builders Youth Development Initiative (BBYDI), has advised Lagos State and other south-west states to reduce their appetite for borrowings, especially foreign loans.

The group noted that such borrowing is dangerous and economically unhealthy.

The director of the BBYDI, Abideen Olasupo, gave the advice during the south- west press briefing, desk review validation meeting and public dialogue on tax and debt justice convened by his organisation in collaboration with CISLAC Tax Justice and Governance Platform and Christian Aid Nigeria.

Olasupo said the meeting sought to address issues relating to the management of taxes and the critical imperative of debt justice within the south-west region.

A report on “Debt Sustainability Assessment of the Southwest States in Nigeria’ prepared by the BBYDI was also presented at the programme.

On the debt sustainability assessment report which analysed the financial status and budget implementation reports of each of the six states in the south-west between 2020 and 2022, Olasupo said governments in the region, especially that of Lagos, must check their borrowings.

He noted that rising debt levels often translate to higher debt service payments, leaving a limited budget for essential public services.

He disclosed that data from the Debt Management Office (DMO) revealed that the overall debt profile of Lagos increased by 41.88 percent from N965.4 billion in 2018 to N1.4 trillion in 2022.

“Similarly, the foreign debt of Lagos State, which as of December 31, 2022, was $1.25 billion, is not only the largest in Nigeria, but continues to grow as seen with the 29.26 percent year-on-year growth in 2022,” he added.