Headline

FULL LIST: 31 States Owe CBN N340bn Bailout Funds

Published

2 years ago

March 24, 2024

Editor

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

“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.

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

Headline

FULL LIST: US To Review Green Cards From 19 ‘Countries Of Concern’ After Washington Shooting

Published

10 hours ago

November 29, 2025

Editor

The Trump administration announced on Thursday that it will review the immigration status of all permanent residents, or “Green Card” holders, from Afghanistan and 18 other countries following the attack on National Guard troops in Washington, D.C.

U.S. officials identified the suspect in Wednesday’s shooting as a 29-year-old Afghan national who previously worked alongside American forces in Afghanistan.

The individual was granted asylum earlier this year, not permanent residency, according to AfghanEvac, an organisation that assists Afghans resettled in the United States after the Taliban takeover in 2021.

“I have directed a full-scale, rigorous reexamination of every Green Card for every alien from every country of concern,” said Joseph Edlow, director of U.S. Citizenship and Immigration Services (USCIS), on X.

The review follows a June executive order from President Trump classifying 19 countries as “of Identified Concern.”

The order banned entry for nearly all nationals from 12 countries, including Afghanistan. The full list of these countries is:

Afghanistan

Myanmar

Chad

Congo-Brazzaville

Equatorial Guinea

Eritrea

Haiti

Iran

Libya

Somalia

Sudan

Yemen

A partial travel ban applies to seven additional countries, though some temporary work visas remain allowed: Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan, and Venezuela.

Headline

Romanian Defence Minister Quits After Admitting Error In Academic Record

Published

10 hours ago

November 29, 2025

Editor

Romania’s defence minister resigned on Friday after saying he made a “mistake” on his CV about his university education, as controversy swirled over alleged lies on his resume.

Ionut Mosteanu – who has admitted to writing on his CV that he graduated from a university he never attended – said he did not want the row “to distract” the NATO member at a time when it and Europe are “under attack from Russia”.

Romania has repeatedly seen drone fragments fall on its soil since Russia invaded Ukraine in 2022, and reported a number of drone incursions.

On Tuesday, a drone crashed in eastern Romania, which borders Ukraine.

Romania has also accused Moscow of “hybrid attacks”, including meddling in presidential elections last year that were subsequently annulled.

“Today, I resigned from my position as minister of national defence,” Mosteanu said in a Facebook post, adding he wanted the country to be focused on its “difficult mission”.

“Romania and Europe are under attack from Russia. Our national security must be defended at all costs,” he added.

Mosteanu had come under pressure after a media investigation published on Thursday revealed that he wrote in a CV that he graduated from a university which he did not actually attend.

That same day he apologised for what he called “a mistake”.

“In a CV I quickly put together in 2016 using a template I found online, there is a mistake that I admit embarrasses me. I didn’t pay much attention to these details at the time,” he said on Facebook.

Mosteanu was appointed defence minister in June of this year, when a new pro-European government was formed after months of political turmoil.

Prime Minister Ilie Bolojan said in a press release that he would propose economy and tourism minister Radu Miruta take over the defence portfolio in the interim.

AFP

Headline

Russia Insists Ukraine Must Cede Land Or Face Continued Military Push

Published

2 days ago

November 27, 2025

Editor

Russian President Vladimir Putin said Thursday that he would end his Ukraine offensive if Kyiv withdrew from territory Moscow claims at its own — otherwise his army would take it by force.

The Russian army has been slowly but steadily grinding through eastern Ukraine in costly battles against outnumbered and outgunned Ukrainian forces.

Washington has meanwhile renewed its push to end the nearly four-year war, putting forward a surprise plan that it hopes to finalise through upcoming talks with Moscow and Kyiv.

“If Ukrainian forces leave the territories they hold, then we will stop combat operations,” Putin said during a visit to Kyrgyzstan. “If they don’t, then we will achieve it by military means.”

Russia controls around one-fifth of Ukraine’s territory. The issue of occupied land, which Kyiv has said it will never cede, is among the biggest stumbling blocks in the peace process.

Another important issue in the talks are Western security guarantees for Ukraine, which Kyiv says are needed to prevent Moscow from invading again in the future.

Washington’s original plan — drafted without input from Ukraine’s European allies — would have seen Kyiv withdraw from its eastern Donetsk region and the United States de facto recognise the Donetsk, Crimea and Lugansk regions as Russian.

The US pared back the original plan over the weekend following criticism from Kyiv and Europe, but has not yet released the new version.

Putin, who has seen the new plan, said it could be a negotiation starter.

“Overall, we agree that it could form the basis for future agreements,” he said of the latest draft, which the US is thought to have shortened to about 20 points.

US negotiator Steve Witkoff was expected in Moscow next week to discuss the revised document, Putin said.

US Army Secretary Dan Driscoll is meanwhile due to visit Kyiv later this week, Ukraine’s top presidential aide Andriy Yermak said.

– ‘Little can be done’ –

In his remarks Thursday, Putin repeated the claim that Russia had encircled the Ukrainian army in Pokrovsk and Myrnograd in Ukraine’s eastern Donetsk region — the most fiercely embattled area and a key target for Moscow’s forces.

“Krasnoarmeysk and Dimitrov are completely surrounded,” he said, using the Russian names for the cities.

Moscow was also advancing in Vovchansk and Siversk, as well as approaching the important logistic hub of Guliaipole, he added.

The Russian offensive “is practically impossible to hold back, so there is little that can be done about it”, Putin said.

Ukraine has denied Pokrovsk and Myrnograd are encircled, insisting its forces continue to hold the enemy along the front line.

Putin also questioned Ukrainian President Volodymyr Zelensky’s legitimacy and said signing any agreement with him would be legally “almost impossible” at the moment, a suggestion that has drawn groans from Kyiv and its allies.

According to data analysed by AFP from the American Institute for the Study of War (ISW), Russian forces have conquered an average of 467 square kilometres (180 square miles) each month in 2025 — a step up from 2024.

Moscow launched its full-scale invasion of Ukraine in February 2022, triggering the worst armed conflict in Europe since World War II.

The war has killed hundreds of thousands of people and forced millions to flee their homes.