Thursday, June 22, 2017
Nigeria's state debts.
An increasing number of the 36 states that make up Nigeria’s federal system are seriously indebted. At the same time, the earning power of states has stagnated in the current period of economic downturn. As a result, state governors are finding it increasingly difficult to finance their debt obligations. A federal government bailout in July 2015 staved off disaster, but debt levels remain unsustainable. In turn, this has led to a greater focus on boosting states’ internally generated revenue (IGR).