News
20 Governors Borrow Fresh N446bn As Revenues Tumble

Debt servicing costs incurred by 29 state governments consumed 80.7 per cent of their Internally Generated Revenue during the first six months of 2024, highlighting the significant financial burden the sub-nationals currently face, according to The PUNCH.
The dire situation also forced the governors to borrow a total sum of N446.29 billion within the same period despite a 40 per cent increase in its statutory allocation from the Federation Account.
The latest information is according to an analysis of data obtained by our correspondent using the budget implementation reports from each state’s website and Open Nigerian States. This BudgIT-backed website serves as a repository of government budget data.
The performance report is prepared quarterly and issued within four weeks from the end of each quarter.
This heavy burden underscores a critical issue in fiscal management, as the vast majority of the revenue that states could otherwise allocate to essential public services and development projects is being diverted to meet debt obligations.
It also reveals the severe constraints faced by state governments in managing their debt burdens inherited from previous administrations and addressing the needs of their residents.
Nigerians had hoped that with an increased statutory allocation of 40 per cent from the central government, state governors should have more than enough to fulfill their statutory obligations.
In 2023, state governors got the most FAAC allocations in at least seven years. The rise in FAAC allocations to the three tiers of government, especially states followed the petrol subsidy removal and currency reforms of the current administration.
The reforms have reportedly led to a 40 per cent boost in income. Experts believe the revenue increase should have reduced state governments’ appetite for more borrowing.
Instead, the sub nationals are spending a large chunk on repaying loans and taking more loans.
Recall report earlier had it that most of the Federal Accounts Allocation Committee funds for Osun, Ondo, Kaduna, and Cross Rivers states will be used in servicing debts this year.
This is because these states currently have a deficit of N10.94bn, N27.72bn, N15.83bn, N10.02bn respectively following debt servicing deductions by FAAC.
With such a large portion of revenue being used to service debt, it becomes increasingly challenging for states to achieve long-term economic stability and improve the quality of life for their residents.
Earlier this year, Kaduna State governor, Uba Sani had complained vehemently about the huge debt burden inherited from previous administrations, lamenting that it had stopped the prompt payment of salaries and more borrowings in the last nine months of his government.
The governor who made this known while addressing a Town Hall Meeting at the late Umaru Musa Yar’Adua Hall, stated that his administration inherited a total of $587m, N85bn, and 115 contract liabilities.
READ ALSO: FG, States, LGs Shared N1.2tn In August – FAAC
He said, “Despite the huge debt burden of $587m, N85bn, and 115 contractual liabilities sadly inherited from the previous administration, we remain resolute in steering Kaduna State towards progress and sustainable development. We have conducted a thorough assessment of our situation and are sharpening our focus accordingly.”
The PUNCH had reported that state governors faced an uphill task of stimulating the economies of their respective states after they inherited at least N2.1tn in domestic debts and $1.9bn in external debts from their predecessors.
This was as 22 states spent a total sum of N251.79bn to service debt borrowed by past administrations within nine months of assuming office (July 2023 and March 2024).
The situation also forced the state governments of Ekiti, Cross River, and Ogun to propose a suspension of their foreign debt repayments worth $501m due to severe foreign exchange volatility.
The request, though rejected by FAAC, was part of their efforts to mitigate the heightened debt service burdens, which state officials claimed has significantly hampered their ability to service existing debts.
Experts say the high debt servicing costs leave little room for investment in infrastructure, education, healthcare, and other key areas vital for economic growth and social welfare.
Meanwhile, an analysis of the budget implementation report showed that Akwa-Ibom, Borno, Cross Rivers, Edo, Katsina, and Niger spent between 60 and 80 per cent of their internally generated revenue to repay owed debts.
Also, states as Abia, Anambra, Bayelsa, Delta, Ebonyi, Ekiti, Jigawa, Enugu, Kebbi, Kwara, Ondo, Osun Zamfara, and Oyo disbursed between 13 and 58 per cent of their revenue for debt servicing
While the amount spent on debt servicing for nine states including Adamawa, Bauchi, Gombe, Imo, Kano, Kogi, Plateau, Taraba, and Yobe exceeded their revenue within the period.
Data for Benue, Nasarawa, Ogun, Rivers, Sokoto, and Kaduna states were not available when this report was filed. Only Lagos State recorded an impressive IGR of N603.71bn while it paid N201.49bn as debt charges.
A state-by-state breakdown indicated that Abia State under the leadership of Governor Alex Otti spent N4.83bn on servicing its debt, while it earned N15.6bn as revenue, representing a ratio of 31 per cent.
Adamawa spent N14.48bn on its debt but earned N5.75bn, recording a deficit of minus 252 per cent, Akwa-Ibom state spent N20.78bn on its servicing but got N31.74bn IGR indicating 65.4 per cent ratio.
Anambra serviced its debt with N4.8bn but got N18.61bn IGR at a ratio of 25.9 per cent. Bauchi got a debt service ratio of minus 42.9 per cent after it earned N3.92bn but spent N16.8bn on servicing. Bayelsa spent N17.84bn on servicing but earned N46.98bn as revenue, indicating a servicing ratio of 38 per cent.
Further analysis of the report indicated Borno spent N7.25bn on debt charges and earned N12.04bn, representing a ratio of 60.2 per cent, Cross Rivers had a debt service ratio of 60.7 per cent after it spent N12.05bn on loans and got N19.86bn IGR.
READ ALSO: 22 States Spent N251bn On Debt Servicing In Nine Months – Report
Delta State’s burden was 58.2 per cent after it spent N39.08bn on reducing its debt and earned N67.05bn within the review period. Ebonyi had a 48.6 per cent debt ratio due to its N5.05bn spending on debt and N10.39bn revenue collection. Edo State under the leadership of Governor Godwin Obaseki spent N22.66bn on servicing and collected N34.44bn as revenue, indicating a debt ratio of 65.8 per cent.
Ekiti had a debt service ratio of 47.9 per cent after it spent N7.85bn on loans and got N16.39bn IGR. Enugu spent N3.49bn on its debt but earned N16.39bn, indicating a 20.6 per cent ratio. Gombe spent N13.07bn on its debt but earned N9.6bn, recording a deficit of minus 136 per cent. Imo State also recorded a deficit of minus 1.10 per cent after it spent N10.68bn on servicing but got N9.69bn as revenue.
Also, Jigawa State spent N1.89bn on servicing while it earned N4.55bn as revenue, representing a ratio of 41.6 per cent. Kano recorded a deficit of minus 244.4 per cent due to N60.02bn expense on debt but collected N24.57bn as revenue.
Katsina had a 77.4 per cent debt ratio due to its N8.14bn spending on debt and N10.51bn revenue collection. Kebbi spent N1.99bn on its loan servicing while it earned N4.79bn as revenue, representing a ratio of 41.6 per cent. Kwara State recorded the lowest debt-to-revenue ratio of 13.9 per cent, and spent N4.87bn on debt charges but collected N35.1bn as revenue.
Kogi spent N12.79bn on servicing and collected N12.75bn as revenue, indicating a debt ratio of minus 1.06 per cent. Niger State recorded a debt ratio of 80.7 per cent due to debt charges of N11.88bn and revenue collection of N14.73bn.
Ondo State recorded a debt to revenue of 52.4 per cent, Osun (43.2 per cent), Oyo (57.2 per cent). Plateau State recorded the highest debt-to-revenue ratio of minus 550.76 per cent, spending N61.23bn on debt charges but collected N11.11bn as revenue. Taraba and Yobe states recorded a deficit of minus 283.5 per cent and 1.16 per cent respectively.
Experts have, however, attributed the significant increase in debt servicing cost partly to the devaluation of the naira, which drove up the cost of servicing foreign debt obligations as the nation grapples with the forex liquidity crisis and exchange rate volatility.
The Director/CEO of the Centre for Promotion of Private Enterprise, Dr Muda Yusuf, speaking in an exclusive interview on Sunday, stated that the significant debt servicing cost was adversely impacted by the depreciation of the naira, which caused a decline in its value relative to other currencies.
He noted that the enormous debt burden inherited by the current administration is also straining state finances and impacting its ability to meet major obligations.
Mr Muda said, “The point is that these states inherited a huge burden of debts. The figure mentioned may sound outrageous but is not much when calculated in dollar terms. Multilateral debts are also tied to infrastructural projects and developmental purposes. Borrowing is not in itself bad if it is used for developmental purposes but the burden of debt must not suffocate the state finances and affect its ability to fulfill major obligations.
“Also, those debts are foreign and once the naira depreciates, it affects the level of debt. As they struggle to service it, the level is still going up because of the exchange rate depreciation. With the depreciation of the currency, the burden of servicing those loans has become extremely very heavy. The exchange rate factor is a major challenge in the debt burden of many states.”
READ ALSO: FG Eyes $4.4bn New Loans As Debt Hits N101tn
Government spending has come under increased scrutiny in recent times, particularly in light of the country’s worsening economic challenges.
At different fora, financial experts have also raised concerns about states’ spending on recurrent expenditure, highlighting the need to embrace financial innovations.
A professor of Economics at Babcock University, Segun Ajibola, stated that the enduring problem of high governance expenses had persisted at the state level, with inadequate oversight and accountability resulting in minimal economic benefits for grassroots citizens.
Ajibola, a former president of the Chartered Institute of Bankers, lamented that state assemblies had also abandoned their oversight duties, leaving the state governors to operate with no iota of transparency and accountability.
He said, “The first issue is the perennial complaint about the high cost of governance in Nigeria and at all levels. When you look at these issues, attention is often concentrated on the Federal Government, so the searchlight is always more on the central government. Most often, nobody cares about what is happening in the states and local government, and that is where the problem is.
“There are so many institutional frameworks in place to look at what is happening at the federal level but who cares about the states? The cost of governance in relative terms is even much higher in states than the federal and that is why you hardly feel the impact of governance in most states.
“Only a few states can boost a significant presence in the lives of their people in our states. The state assemblies are expected to conduct oversight functions on the activities of the executives in their respective states, but in reality, how many states are doing that, leaving the executives to be all in all incurring high costs.”
Meanwhile, 20 state governments borrowed a total sum of N446.29bn collectively to address their budget deficits and to cover various expenses, including essential services, infrastructure projects, and operational costs.
The PUNCH findings also revealed that the majority of these loans were sourced from multilateral and international creditors, contrary to the Federal Government’s emphasis on borrowing from the domestic market.
Further analysis showed that Cross Rivers State was among the states that got the highest loan of N121.22bn between January and June. It was followed by Oyo State with N55.36bn loans. Third on the list is Kogi State with loans worth N41.22bn.
Katsina State also obtained loans worth N34.09bn from creditors within the quarter.
Other states including Niger got N34.03bn, Gombe (N32.38bn), Ondo (N20,82bn), Borno (N20.7bn), Bauchi (N19.28bn), Taraba (N20.23bn), Yobe (N10.17bn), Kwara (N10.06bn), Ekiti (N7.94bn), Ebonyi (N6.43bn), Kano (N6.15bn), Abia (N3.37bn), Enugu (N1.39bn).
The states with the least borrowing include Edo (N633.73m), Osun (N250m), and Plateau state with N530.86m loan.
PUNCH
News
Oba of Benin Renews Bond With Ancestral Relations, Nigerians During Emorhọ Feast

The palace of the Oba of Benin was agog with activities during the 2025 Emorhọ fest, declared by Omo N’Oba N’Edo Uku, Uku Akpolokpolo, Ewuare II, Oba of Benin as part of activities to mark the ancient Emorhọ, otherwise known as the ‘New Yam Festival’.
Oba of Benin, who reenacted the age-long festival, renewed the bond that exist between him and his ancestral relations from Issele-Uku in Aniocha North Local Government Area of Delta State at the event, which attracted dignitaries, including Benin people, indigenes and non-indigenes across Edo State.
Members of the Benin Royal family, Edionwere (village heads), youth leaders across the various communities in Benin, market women group, palace chiefs, traditional priests and priestesses in Benin, were also in attendance.
READ ALSO:Oba Of Benin Declares Two-week Fasting, Prayer For Edo
A special prayer offered on behalf of the palace by Chief Enorense Ozigbo-Esere, the Osuma of Benin, paved the way for the commencement of the feast, where Secretary to the Benin Traditional Council, Frank Irabor, welcomed guests and highlighted the essence of the gathering.
Speaking in an interview, Oba Ewuare younger ancestral relations from Issele-Uku led by Chief Michael Odiakosa, expressed delight for the privilege to be part of the historic celebration.
He explained the relationship between Benin and Issele-Uku, reaffirming that, “Issele-Uku is an extension of Benin Kingdom. We are all descendants of Benin. So, we are at home”.
READ ALSO:Oba Of Benin Ushers In ‘Emorọ’
“We are in a safe place. We came to celebrate the festival with our father, the Omo N’ Oba, and we are happy to be here”, Odiakosa said.
On his part, 99-year-old Pa. Paul Osarumwense Oyemwen, the Odionwere of Orior-Ozolua community in Uhunmwode LGA who thanked the Oba for the gesture, said the festival is not new in Benin and it’s devoid of sacrifices.
Expressing her appreciation to the Oba of Benin, the ‘Edo markets leader’, Pastor (Mrs) Josephine Ibhaguezejele, noted that members of the group have been waiting anxiously for the opportunity to partake in the yearly festival, while praying God that the blessings of the festival to transform lives.
Also speaking, Pa. Daniel Osunde, the Odionwere of Idumwun-owina, N’ Iyeke-orhiomwon, also prayed for the Oba and thanked the first Class traditional ruler for his foresight.
Excited guests in their numbers were fed with African delicacy, amid dancing and jubilation, while members of Isikhian women group who gave a good account of their stewardship, were not left out in the celebration by the Oba who rewarded them with cash gift and other items in acknowledgement their duties in Benin.
News
Okpebholo Poised To Surpassing People’s Expectations — Edo Deputy Gov

Edo deputy governor, Hon Dennis Idahosa has assured that the Governor Monday Okpebholo-led administration is poised to surpass the expectations of the people of the state in terms of campaign promises fulfilment.
Idahosa said that the administration had hit the grand running right from the day of inauguration by identifying and prioritising the key areas of the SHINE agenda for implementation.
A statement by Mr Friday Aghedo, Chief Press Secretary to the deputy governor, said Idahosa spoke when he received the prestigious Peace Ambassador Award from the International Association of World Peace Advocates (IAWPA).
The award ceremony held at the deputy governor’s office during a courtesy visit by the leadership of the IAWPA led by the President, Amb. Per Stafsen, the South-South Coordinator/Edo state Director, Amb. Amos Areloegbe, and other zonal representatives.
READ ALSO:Okpebholo Warns Companies Against Fuelling Edo–Delta Boundary Dispute
“We pray, by the grace of God, Edo State will surpass the expectations of the people when we are through with our tenure,” he declared.
Idahosa described the recognition as a source of pride, not just for him, but for the Governor Monday Okpebholo-led administration.
“Governor Okpebholo is a man of peace, and his government stands firmly for peace. This award is a validation of his unwavering commitment to building a safe and harmonious Edo State,” he said.
The Deputy Governor emphasized that peace and security remain central pillars of the government’s five-point SHINE agenda, noting that collaboration with traditional institutions, religious leaders, and civil society organizations has been vital in sustaining stability across the state.
READ ALSO:
“Peace is extremely important in any society. Where there is peace, there is security; where insecurity prevails, peace cannot exist.
“This recognition today strengthens our resolve to continue being ambassadors of peace,” Idahosa stated.
On his part, Amb. Amos Areloegbe noted that IAWPA, a United Nations–certified body aligned with the 17 Sustainable Development Goals (SDGs), deliberately chose Edo State to commemorate the International Day of Non-Violence on October 2.
According to him, “Edo State remains one of the most peaceful states in the federation, hence our choice to celebrate here.”
The investiture was hailed by observers as not only an honour to Idahosa but also as an acknowledgment of Edo’s growing reputation as a bastion of peace under Governor Okpebholo’s leadership.
News
Ogoni Women Protest Resumption Of Oil Production, Demand Accountability In $1Bn Cleanup Funds

Ogoni women drawn from all works of life have come out to protest against the resumption of oil production in the area without proper negotiation.
The women expressed anger over the non-transparent nature of the entire oil resumption exercise, accusing the government of attempting to manipulate them into giving up on their demands as expressed in the Ogoni Bill of Rights (OBR).
The women further demanded that the Nigerian government account for $300million Ogoni infrastructure development fund which is alleged to have been diverted by some key government personalities in alliance with some Ogoni leaders.
They further demanded accountability for the $1Billion Ogoni cleanup funds which they said is a failed project.
READ ALSO:
The women, who marched on the streets of Bori, the traditional headquarters of Ogoni, accused the government of neglecting the core demands of the Ogoni people including the demand for the creation of a Bori State and compensation for livelihood losses due to decades of devastating oil spills in the lands.
“We lost everything, crops, drinking water sources, food and farming lands and we now live with strange illnesses which ultimately will lead to our death. No one is interested in all that. The only thing the government is interested in is our oil resources. We reject the insensitivity of the government and we want to be heard”; one of the protesters who pleaded anonymity told Ogoninews.
Another speaker, Mrs Helen Huoma said the plot to resume oil production in Ogoni is deceptive.
“The oil industry people are always lying. They will tell us something and do another. When we ask our MOSOP leaders, they tell us they know nothing about what the government and the oil industry are doing. It’s all a bunch of confusion and deceit. We will resist this move because we paid heavily to give Ogoni a name and the pride it has today”
A woman identified as Janet from Gokana Local Government Area alleged that the Nigerian government has never been interested in the welfare of the Ogoni people.
READ ALSO:
She alleged that the government had only been interested in the oil and after that, they appeased political leaders with contracts to suppress local residents.
“All they do is deceive the Ogoni people and we continue to suffer in the midst of abundant natural resources. If they can divert $300million, then how can we trust them? Before we start, let them account for the $300 million and the cleanup program which, at least, should have solved some basic problems.”
The Nigerian President, Bola Ahmed Tinubu had recently directed the National Security Adviser, Nuhu Ribadu to engage the NNPC Limited and work out modalities for the resumption of oil production in Ogoni. This directive followed a meeting with some Ogoni leaders in Aso Rock, Presidential Villa.
The president had also recently granted pardon to the Ogoni nine including Ken Saro-Wiwa and to four Ogoni leaders who were murdered on May 21, 1995. The Abacha regime had blamed Ken Saro-Wiwa for the murders and executed him along with 8 others on November 10, 1995 despite global outcry acknowledging their innocence.
Following the executions, a United Nations fact finding team visited Nigeria. The team acknowledged that the entire trial process was flawed and noted that Nigeria did not even follow the minimal prescription of its own laws in the conduct of the trial.
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