In nine months, 13 Nigerian states spent N243.2 billion on debt charges despite developmental obstacles.

The research showed that Ondo State spent the most money on debt charges.

According to a recent analysis of budget performance data from 13 chosen states by SaharaReporters, in the first nine months of 2024 alone, an astounding N243.2 billion was set aside for public debt payments.

The research showed that Ondo State spent the most money on debt charges.

Debt charges cost Ondo State N64.6 billion, Oyo N20.5 billion, Yobe N9.2 billion, Kogi N18.1 billion, Taraba N21.1 billion, and Ekiti N12.9 billion.

N12.7 billion for Katsina, N42 billion for Rivers, N15.3 billion for Osun, N2.1 billion for Jigawa, N9.3 billion for Kwara, N4.5 billion for Anambra, and N10.9 billion for Abia.

With billions spent in the first nine months of 2024 alone, debt charges—the interest paid on state government loans—have escalated to worrisome proportions.

Given the current development issues in several states, this tendency is very worrisome. For a long time, experts have maintained that the enormous sums of money allotted to debt charges take vital resources away from important development initiatives, impeding the advancement of governments.

Indeed, according to a recent World Bank study, developing nations paid out a record $443.5 billion in public debt in 2022, with interest payments eating up a sizable portion of low-income nations’ export revenue. High interest rates have made all emerging nations more vulnerable to debt, which makes the issue worse.

The terrible income situation that Nigerian states are experiencing has forced them to rely largely on loans, which has resulted in enormous debt costs.

This vicious loop makes it more difficult for the governments to deal with urgent problems like deteriorating road networks, insufficient healthcare, and inadequate water supplies.

To put this into perspective, Ondo State’s debt costs in the first nine months of 2024 were an alarming N64 billion, which is about three times its N24.4 billion in domestically produced income.

Additionally, this sum exceeds the N19 billion allotted to the state’s ministry of infrastructure and works capital expenditures.

Ondo State spent N64 billion on public debt charges, but N141 million was invested on capital projects for water resources, public sanitation, and hygiene.

Flooding is another problem that Ondo State faces, affecting many people’s lives and property.

Additionally, 51% of homes in the state lack access to safe drinking water, and 66% of households lack sanitary facilities.

Ondo administration had allocated N100 million for borehole rehabilitation, but startlingly, the administration spent N64 billion, or 640 times that amount, on debt costs alone.