World Bank has disclosed that the fiscal deficit of states in Nigeria increased significantly from an estimated 0.2 percent of GDP in 2014, to 1 percent in 2015 and 2016. This was part of statement released in Abuja yesterday. The global apex bank also, said that total state debt increased from 2.4 percent in 2014 to 4.0 percent of GDP by the end of 2016. The states’ fiscal crisis led to two sets of financial assistance packages by the Federal Government. The second— the Budget Support Facility (hinged on a 22-point Fiscal Sustainability Plan)—was advanced in mid-2016 and due to close in mid-2017. “In light of the continuing fiscal pressures, there is a strong need to strengthen the performance of the states through the full and sustained implementation of reforms to increase internally-generated revenues and state spending efficiency, and to strengthen state debt management and fiscal transparency,” said Ulrich Bartsch, World Bank Lead Economist for Nigeria. ...
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