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FULL LIST: 31 States Owe CBN N340bn Bailout Funds

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Thirty-one state governments owe the Central Bank of Nigeria, CBN, a total of N339.9bn obtained to pay workers’ salaries between 2015 and 2023, a document obtained from the apex bank has revealed.

The document also stated that the sub-nationals had yet to pay an outstanding of N339.97bn and a loan default of N1.31bn as of September 2023.

The fund, which was facilitated through the Salary Bailout Facility, a strategic intervention by the CBN aimed at alleviating the fiscal pressures faced by the states, was part of the over N10.3tn intervention fund made available by the apex bank under the immediate former CBN governor, Godwin Emefiele.

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In contrast, the current governor, Olayemi Cardoso, stopped the programme, stressing that the apex bank could not continue to fund more intervention programmes amidst the current economic crisis.

The CBN said the SBF was designed to help the state governments to clear the backlog of salaries owed their employees. The initiative underscores the critical role of the CBN in stabilising the country’s financial landscape, especially in times of fiscal distress faced by state administrations.

READ ALSO: BREAKING: CBN Clears $7bn Forex Backlogs

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The programme, which has been closed according to its status report, involved key stakeholders, such as the benefiting state governments, Deposit Money Banks, the Federal Ministry of Finance, and the Accountant-General of the Federation, all of whom played pivotal roles in implementing and managing the bailout package.

A breakdown of the report showed that 31 state governments benefited from the initiative, with N457.17bn disbursed. Despite the substantial disbursement, the principal repayment made so far totalled N117.21bn, with interest repayments at N45.21bn.

It also showed that the states collectively borrowed N457.17bn to pay salaries to their respective civil servants and an overdue amount of N1.31bn.

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The report further said the top beneficiaries of the bailout facility included Imo, which received N20.46bn; Kogi, N20.26bn; Kano, N20.21bn; Oyo, N16.81bn; and Osun, N15.93bn.

The inability of the states to perform their primary obligation to their workforce has been a front-burner issue in recent times amidst clamour by labour unions to increase the minimum wage from the current N30,000.

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Last year, state governments borrowed about N46.17bn from three banks to pay salaries between January and June, according to an analysis of the half-year 2023 financial statements of Access Bank, Fidelity Bank, and the Zenith Bank Group.

It was observed that the states borrowed the most from Access Bank in the six months, with a record of N42.97bn loan.

This was followed by Zenith Bank with N1.78bn, and Fidelity Bank with N1.42bn in the six months.

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The PUNCH reported the inability of 24 states to pay workers’ salaries this year without having to wait for federal allocations from the central government despite improved federal allocations.

The development also means that the respective wage bills of the affected states surpassed their various internally generated revenues, raising concerns about workers productivity and state governments’ efficiency in internal revenue generation.

The 24 states include Bayelsa, Ondo, Yobe, Sokoto, Taraba, Plateau, Oyo, Niger, Nasarawa, Kogi, Kebbi, Katsina, Jigawa, Gombe, Ekiti, Ebonyi, and Borno.

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Others are Benue, Bauchi, Adamawa, Akwa Ibom, Cross River, Abia, and Delta.

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In 2023, state governors got the most Federal Account Allocation Committee disbursements in at least seven years. The rise in FAAC allocations to the three tiers of government, especially the states, followed the removal of petrol subsidy and currency reforms of the current administration. The reforms have reportedly led to a 40 per cent boost in income.

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Financial experts have raised concerns about states’ spending on recurrent expenditure, highlighting the need to embrace financial innovations.

‘States risk insolvency’

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the report indicated that a majority of states were not financially sustainable and were at risk of insolvency if there was no boost in investment.

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He said, “This issue is a fiscal sustainability problem, showing that many states are not fiscally sustainable and need to work towards it; and that the states need to do a lot more to attract more investments to their states so that their level of dependence on the Federal Allocation Accounts Committee would reduce.

“Even as we speak, many of them are also in debt, and by the time they pay salaries and service their debts, there is not much left to improve on infrastructure. It’s in the interest of the sustainability of the states for them to be more creative in generating more revenue and attracting more investment to their states so that they can generate more revenue.

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“Secondly, we also need to address the issue of fiscal federalism because some of the states don’t have power over some resources in their domain and can’t bring investors into it. For instance, mining is controlled mainly by the Federal Government, you get permission from them and revenue is remitted to them. So we need to revisit the issue of restructuring to help states have more control over resources within their domain.”

A development economist, Aliyu Ilias, said many states had yet to fully develop themselves as industrialised and marketable to attract investors.

Ilias urged governors to develop an area of strength they could leverage to attract foreign investments.

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To address these ongoing challenges, the report recommends that an increased focus be placed on enlightening state investment companies about the benefits of Public-Private Partnerships. Such partnerships could significantly enhance the state’s Internally Generated Revenue, improving fiscal health and reducing dependence on bailout facilities for salary payments.

This delay underscores the broader challenges of fiscal management and sustainability within the states, highlighting the need for more robust financial strategies and practices.
PUNCH

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FG Summons S. African Envoy Over Rising Xenophobic Attacks On Nigerians

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The Federal Government has summoned the Acting High Commissioner of South Africa in Abuja over renewed concerns about xenophobic attacks and protests targeting foreign nationals, including Nigerians, living in that country.

The Ministry of Foreign Affairs said the envoy is expected at its headquarters on Monday, May 4, 2026, for a high-level engagement aimed at addressing the growing tension and safeguarding bilateral relations between both countries.

In a statement issued on Sunday, the spokesperson for the Ministry, Kimiebi Ebienfa, said Nigeria would formally express its “profound concern” over recent developments in South Africa, particularly reports of harassment, violence, and destruction of property belonging to foreign nationals.

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According to the ministry, the meeting will focus on ongoing demonstrations by various groups in South Africa and documented cases of attacks on Nigerians and their businesses in parts of the country.

READ ALSO:Group Condemns Tunisian Xenophobic, Racial Attacks On African Migrants

The objective of this engagement is to formally convey the Nigerian Government’s profound concern regarding recent events that have the potential to impact the established cordial relations between Nigeria and South Africa,” the statement read.

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It added that discussions would also address ongoing demonstrations by various groups within South Africa and documented instances of mistreatment of Nigerian citizens and attacks on their businesses.

The ministry acknowledged growing anger among Nigerians over reports of xenophobic violence but urged restraint, stressing that diplomatic engagement remained the preferred channel for resolution.

It assured Nigerians that the Federal Government was actively engaging South African authorities to ensure the protection of its citizens abroad.

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The Ministry is aware of the growing discontent among Nigerians concerning the treatment of their nationals in South Africa. Nevertheless, it implores the Nigerian public to remain calm and reiterates the Federal Government’s commitment to protecting the rights and well-being of Nigerian citizens residing in South Africa,” the statement added.

The latest diplomatic move comes amid renewed reports of xenophobic tensions in parts of South Africa, where foreign-owned businesses have occasionally been targeted during protests linked to unemployment and economic hardship.

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South Africa has a history of xenophobic violence dating back to 2008, with subsequent flare-ups in 2015 and 2019, when mobs attacked migrants, looted shops, and displaced thousands of foreign nationals across several provinces.

In past incidents, Nigerians and other African nationals were among those affected, prompting strong diplomatic reactions from Abuja and calls for stronger protection of foreign communities.

While South African authorities have repeatedly condemned such attacks and deployed security forces to restore order during outbreaks of violence, concerns have persisted over recurring hostility in some communities.

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Mississippi Man ‘Kills Mother, Flushes Her Remains Down Toilet’

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A 29-year-old Mississippi man, Zachary Lavel Jackson Jr., has been charged with multiple offences, including first-degree murder, over the death of his mother, Lana Brown Bradley, after deputies responded to her Natchez home on April 4 following a missing person report from relatives.

The Adams County Sheriff’s Office said deputies were called to Bradley’s residence after her oldest son was unable to reach her the previous day.

Jackson was initially identified as a family member before investigators confirmed he was her son.

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Sheriff Travis Patten described the case as deeply disturbing.“This is by far the most heinous crime that I’ve ever witnessed in my entire life. We weren’t out there that day; this was one of those things when we walked up.

READ ALSO:Bandits Kill Nine, Injure Eight In Fresh Attack On Zamfara Village

This was one of those cases that you will never, ever forget in your life. This is the type of case that follows you home,” Patten told WJTV.

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According to the sheriff, deputies noticed signs of a recent cleanup when they arrived at the home.

“As soon as they walked in the house, they could just see where somebody had been cleaning up, and they could smell chemicals all throughout the house.

“Floor was extremely slippery. And the older son said that this is just unusual for the youngest son to be cleaning up the house like that,” Patten explained.

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Jackson, the youngest son, was found in a bathroom, where deputies allegedly made a discovery that became central to the investigation.

“I can say what was in the toilet, and it was her flesh. He chopped her up in pieces and dismembered her in a way that whoever came looking for her would have to do their due diligence to find her, and that’s just what we did,” the sheriff said.

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Authorities said Jackson allegedly placed parts of his mother’s body in a suitcase and attempted to dispose of other remains.

Jackson faces charges of first-degree murder, second-degree murder, mayhem and tampering with evidence.

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Investigators said Bradley, a retired teacher, had recently sought to evict her son from the home. Patten, citing family interviews, said Jackson was believed to be mentally unstable but also noted that his actions appeared deliberate.

“He had threatened her the day before because she was looking to have him evicted from the home.

“She was in the process of doing so and had just gone to court the day before to have him removed from the home,” Patten explained.

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Iran Says War With US May Resume As Trump Rejects Proposal

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Iran’s military has warned that the war with the United States and Israel could resume, declaring that it is fully prepared for any renewed confrontation as tensions between the sides continue to deepen.

In a statement reported by Iranian state-affiliated media, senior military officials said a return to hostilities is “likely”, citing what they described as Washington’s lack of commitment to previous agreements and negotiations.

The warning comes after US President Donald Trump expressed dissatisfaction with Iran’s latest peace proposal, saying the terms presented by Tehran included demands he “can’t agree to”.

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READ ALSO:US Underestimated Iran Before War – France’s Bardella

According to officials in Tehran, Iran believes it showed flexibility during earlier negotiations, including talks held in Islamabad and during the ceasefire period. However, authorities argue that the United States has instead taken a tougher stance, widening the gap between both sides.

Iranian officials insist that key issues such as sanctions relief and the status of the Strait of Hormuz must be resolved before any broader agreement, including discussions around its nuclear programme, can progress. They also reject what they describe as US demands amounting to “surrender”.

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The growing diplomatic deadlock has raised fears that another round of fighting may be imminent, with Iranian authorities indicating that preparations are already underway.

READ ALSO:Iran Allows 20 More Pakistani Ships To Pass Through Strait Of Hormuz

Meanwhile, the prolonged conflict continues to have far-reaching consequences within Iran. Internet monitoring group NetBlocks reports that the country has entered its 64th day of near-total internet disruption, effectively isolating it from global online networks.

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The shutdown, which began after renewed anti-government protests earlier in the year and intensified following the outbreak of the war, has significantly disrupted businesses and livelihoods across the country.

Beyond Iran, the conflict is also reshaping global dynamics. Rising oil prices linked to the war have placed pressure on international markets, while geopolitical tensions have strained alliances, including between the United States and European partners.

As both sides remain far apart on key issues, analysts warn that without a breakthrough in negotiations, the fragile pause in fighting could collapse, paving the way for renewed military escalation in the region.

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