Despite the continuous depreciation of the Nigerian naira, 23 Nigerian states have seen a significant increase of 64.26% in their bilateral loans, reaching a total of $462.81 million by the end of June.
Foreign debt soars
This surge in bilateral borrowing reflects a growing appetite among state governors for this type of financing.
France’s Agence Francaise Development (AFD) held a significant portion of these loans, with debts owed to France growing by 21.84% to $306.32 million as of June 2023.
Loans from China, India, and other sources also witnessed substantial growth, increasing by 415.79% to $156.49 million during the same period.
The depreciation of the naira has made dollar-denominated loans more expensive for these states.