Contrary to the guidelines of the Debt Management Office on subnational borrowing, 23 states of the federation exceeded their borrowing limits in 2015.
The reports by Fiscal Responsibility Commission indicate that Lagos, Kaduna, Cross River, Gombe, Ekiti, Edo, Ondo and Imo states had borrowed more than 50 per cent of their annual statutory allocations as at 2015.
According to DMO guidelines, the debt to income ratio of states cannot exceed 50 per cent of the statutory revenue for the preceding 12 months.
