In June 2023, N299.92 billion was disbursed to all the 36 states from the Federation Account Allocation Committee (FAAC) based on the monthly revenue data released by National Bureau of Statistics (NBS).
Further analysis of the FAAC data showed that some deductions including for external debt, contractual obligation (ISPO) and “other deduction’’ were made from each state’s monthly revenue based on its outstanding obligations to different creditors, locally and internationally.
In terms of deductions for the repayment of external debt, Lagos State with N2.6 billion deduction topped the list. It was followed by Kaduna State with N1.4 billion; Bauchi State with N480.2 million; Cross River State with N442.2 million; and, Oyo State with N429.8 million.
Subsequently, the states with the lowest deductions for external debt include Borno State with N48.6 million; Yobe State N51.8 million; Delta State with N52.8 million; Plateau State with N60.3 million; Benue State with N63 million; Zamfara State with N66.4 million; and, Jigawa State N66.9 million.
The data also revealed the states with the highest contractual obligation (ISPO) repayment and these are Plateau State with N1 billion; Gombe State with N898.8 million; Katsina State with N850 million; Ondo State with N644.2 million; Kwara State with N632.2 million; Cross River State with N541.3 million; and, Niger State with N514.2 million.
Although, there were few states without the ISPO deductions, some states still have lesser amount of ISPO than others and they include Kogi State with N117.5 million; Nasarawa State with N124.7 million; Bauchi State with N201.2 million; Sokoto State with N206 million; and, Kano State with N292.6 million.
A few other states however, have higher ‘’other deduction’’ deducted from their revenues and they include Delta State which had N2.4 billion deducted from its allocation; Imo State with N1.7 billion; Akwa Ibom State with N1.7 billion; Osun State with N1.6 billion; Ogun State with N1.5 billion; Bayelsa State with N1.3 billion; Oyo State with N1.1 billion; Kogi State with N1.1 billion; and, Bauchi State with N1.1 billion.
Meanwhile, states with the lowest “other deduction’’ include Lagos State with N148,000; Nasarawa State with N279.3 million; Anambra State with N283.5 million; Jigawa State with N318.2 million; Enugu State with N388.2 million; and, katsina State with N389.7 million.
It should be noted that external debt is the portion of a country’s debt that is borrowed from foreign lenders, including commercial banks, governments or international financial institutions while a contractual obligation is something that parties agree to do or become responsible for when they sign a contract.
ISPO means an irrevocable standing payment order issued by the accountant-general of the state with respect to the financial obligation of the state to a concessionaire.