Kaduna records highest debt deduction from FAAC in 2024 – NEITI
A NEITI report titled "Beyond Federal Allocations: Cost of Borrowings and Debt Servicing at State Level in Nigeria" revealed that Kaduna had the highest debt deduction from FAAC in 2024, followed by Ogun, Bauchi, and Cross River states. The report highlighted the impact of debt servicing obligations on state capacity to fund essential services, local infrastructure, and poverty reduction initiatives.
It noted that some states, like Borno, Jigawa, and Benue, had lower debt reduction obligations, while others, such as Kebbi, Bayelsa, and Anambra, demonstrated prudent borrowing practices. The report flagged opaque contract terms and excessive deductions in some states, recommending the establishment of State Debt Management Offices and revisions to revenue allocation formulas to address fiscal inequalities.
NEITI Executive Secretary Orji Ogbonnaya Orji emphasized the need for fiscal discipline and transparency to ensure equitable growth and development.
Plus234Feed summary based on reporting from Daily Trust. Read the original report below.
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