64% surge: 23 Nigerian states increase foreign loans

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64% surge: 23 Nigerian states increase foreign loans
64% surge: 23 Nigerian states increase foreign loans

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.

These loans have primarily been sourced from countries such as China, India, France, and others.

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.