​No quick fix for states’ finances
Commentary on the fiscal impact of the oil price crash tends to ignore the states and focus on the FGN. This may well be because the better and more recent data cover the federal government, or because state government finances are regularly under pressure. The latest report from the DMO shows states’ external debt at US$3.37bn at end-December (see chart), one third on the books of Lagos State and all guaranteed by the FGN. Their combined domestic debt was shown at N1.66trn (then US$8.95bn) at end-2014, since which time 23 states’ bank borrowings of N575bn have been converted into FGN long bonds. The outstanding value of states’ bond issues amounts to N456bn.
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