Kwara’s domestic debt profile as of December 31, 2020, stands at N63.63bn. The figure swelled from N63.04bn in 2019 to N63.63bn in 2020, THE INFORMANT247 has gathered.
According to the Debt Management Office’s report, the figure rose by about N600 million from December 31, 2019, to December 31, 2020. Kwara now accounts for 63.63bn of Nigeria’s N4.2tn debt stock as of the end of 2020.
Data obtained by this medium showed that the state’s domestic debt rose from N63.04bn in 2019 to N63.63bn within the one year period.
Official documents obtained from the government source revealed that the state currently services Restructured Commercial Bank Loans (FGN Bond) and the Micro Small Medium Enterprise Development Fund (MSMEDF) with over N600m monthly.
It’s observed that Contract arrears, Pension and Gratuity are responsible for the increments in the domestic debt with over N300m monthly, as shown in the document.
Meanwhile, with over N63bn debt in 2020, the state government is taking another N35bn loan in 2021 which will likely draw the state’s total domestic debt portfolio to close to N100bn.
The government, this medium learnt, will repay the loan within 8 years through the ISPO/Federal Allocation. However, there’re contentions of irregularities as the State House of Assembly was reported to have approved the new loan request without details for proper scrutiny.
