With Proposed Borrowing, States’ External Loans to Increase by 40%

Barring any last minute change on approval of new borrowing, the total external loans contracted by the 36 states and the Federal Capital Territory are estimated to increase by 39.65 per cent, THISDAY can report.

As it stands, seven states have secured approval to take external loans of $1.070 billion while three are awaiting approval to borrow $492.4 million to add to the existing loans.

The seven states that had been given the nod by the federal government are Abia ($200 million), Ebonyi ($70 million), Enugu ($100 million), Kano ($100million), Ogun ($350 million), Ondo ($200 million) and Plateau ($50 million).

The states that are still waiting for the go-ahead are Jigawa ($32..4 million), Kaduna ($350 million) and Katsina ($110 million).

The new borrowing proposals (approved and yet-to-be approved) will bring the total external loans by all the 36 states to an estimated $5.502 billion from the current level of $3.940 billion published by the Debt Management Office (DMO), representing a significant increase of 39.65 per cent.

THISDAY, November 19, 2017

 

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