A coalition of non-governmental organisations in Rivers state styling itself as the Niger Delta Citizens and Budget Platform (NDCBP), has expressed concern over a recent approval by the state House of Assembly for a $280 million concessionary loan to be taken from the World Bank and the Africa Development Bank (AFDB).

According to the group, the loan, which is purportedly for providing water and sanitation in the state, will only drive the state into deeper debt.

Debt crisis is not new to a nation as states in developed countries face the same dilemma worldwide. In the United States of America, 50 state governments owe about $4.19 trillion to the FG with California having the largest debt of $617.6 billion. While down here in Nigeria, Lagos headlines the debt states with $938.13 million, up from $611.25 million (2012 statistics), while Kaduna state follows suit with $241.3 million, from $215.68 million.

In Nigeria for the most part, states lack the financial capacity to fund projects, and are as a result forced to borrow from the Federal government or the private sector. These debts can come in the form of bonds, unfunded pension commitments and budget gaps.

The question of what these states achieve with the borrowed funds arises.

In November 2013, Lagos state was reported to have borrowed N87.5 billion, for the purpose of poverty eradication and sustainable economic growth through infrastructure renewal and development – part of which was for the Lekki Toll project. Also in 2013, Governor Ibikunle Amosun of Ogun State, obtained a N25billion loan from the capital market to fund some road projects.

The Lekki Toll project was completed by the Lagos state government, while the Ogun state government reported the construction of a 32km highway connecting Sango-Ijoko-Akute-Ojodu. Completion of this project has, however, not been reported.

Below is a list of states and their debts;

1] Lagos $938,135,517.81
2] Kaduna $241,309,864.17

3] Cross River $121,966,922.51
4] Ogun $116,802,098.95

5] Oyo $80,201,551.16
6] Katsina $73,725,662.92

7] Bauchi $70,582,915.21
8] Kano $63,897,444.17

9] Akwa Ibom $61,841,809.85
10] Osun $61,838,048.10

11] Enugu $53,166,642.89
12] Imo $52,712,924.49

13] Ondo $52,134,726.59
14] Nassarawa $47,648,079.92

15] Kebbi $46,855,525.42
16] Kwara $45,871,785.31

17] Edo $44,292,718.14
18] Sokoto $44,111,989.86

19] Ebonyi $43,314,886.43
20] Rivers $42,690,633.60

21] FCT $39,218,574.39
22] Ekiti $37,237,967.18

23] Jigawa $35,846,252.03
24] Abia $34,180,112.33

25] Kogi $33,960,974.29
26] Gombe $33,652,015.79

27] Yobe $33,033,729.59
28] Zamfara $32,292,716.69

29] Niger $31,750,342.66
30] Benue $30,722,987.68

31] Adamawa $30,556,441.13
32] Anambra $30,323,574.40

33] Bayelsa $28,662,160.25
34] Taraba $23,554,326.97

35] Plateau $22,674,216.60
36] Delta $19,665,800.31

37] Borno $15,585,332.20

As the controversy over the $280million loan approved for Rivers State escalates, it should be noted that there has been a steady increase in the number of external creditors to Rivers state. In 2008, Rivers State owed $32.3 million which increased to $33.7 million in 2009. By 2010, it rose to $35.5 million and decreased to $33.8 million in 2011, only to rise again to $36.6 million in 2012 and $42.6 million as at the end of 2013. The current external debt figure places Rivers State in the 20th position on the external debtor list.