News
Seven States Spend 190% Of Revenue On Loan Repayment

Seven states spent an average of 190 per cent of their Internally Generated Revenue on debt servicing in the first quarter of 2025, a development that shows the worsening fiscal strain facing subnational governments.
Data from the Q1 2025 Budget Implementation Reports of Bayelsa, Adamawa, Benue, Niger, Kogi, Taraba, and Bauchi states show that debt service expenditure in each of the states exceeded their IGR, in some cases by more than 300 per cent.
The trend, when compared with figures from the preceding quarter (Q4 2024), also reflects a sharp quarter-on-quarter surge in debt service cost, which rose by approximately 51 per cent across the states reviewed.
The PUNCH observed that seven Nigerian states spent a total of N98.71bn on debt servicing in Q1 2025, marking a sharp increase of N33.48bn or 51 per cent compared to the N65.24bn recorded in the previous quarter.
The data further revealed that the combined IGR for the seven states rose modestly from N44.05bn in Q4 2024 to N51.92bn in Q1 2025, indicating an increase of N7.87bn. However, this marginal revenue improvement was outpaced by a surge in debt repayment obligations, highlighting the widening fiscal gap at the subnational level.
Disbursements from the Federation Account Allocation Committee to the affected states increased from N360.75bn in Q4 2024 to N419.86bn in Q1 2025, representing a rise of N59.11bn within three months. The increase shows the continued dependence of states on federal transfers to meet not only operational costs but also mounting debt obligations.
In Q1 2025, the seven states required a combined total of N46.80bn from their FAAC allocations to fully cover the shortfall between IGR and debt service.
This amount represents approximately 11.15 per cent of their total FAAC inflows of N419.86bn during the period
In Benue State, debt service costs rose from N1.99bn in Q4 2024 to N21.40bn in Q1 2025, while IGR improved from N1.98bn to N5.18bn within the same period. This means that debt service in the first quarter accounted for 413 per cent of the state’s IGR and 31.6 per cent of total expenditure. The state relied on at least N16.22bn from its FAAC allocation of N58.71bn to meet the shortfall.
Kogi State reported a Q1 2025 IGR of N9.63bn but spent N23.88bn on debt servicing, equivalent to 248 per cent of its IGR. In the preceding quarter, debt service stood at N10.17bn against an IGR of N7.86bn.
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The state received N55.41bn from FAAC and recorded total expenditure of N110.13bn, of which 21.7 per cent was used for debt repayment. The Kogi State Government recently said that it has liquidated a total debt of N98.8bn since assuming office 15 months ago.
The State Commissioner for Finance and Economic Planning, Ashiru Idris, disclosed this during a briefing with journalists following the Executive Council meeting held at the Council Chambers, Government House, Lokoja.
The commissioner explained that the debts settled include liabilities dating back to the administration of Alhaji Ibrahim Idris, as well as the N50bn bailout fund granted to the administration of Idris Wada.
“So far, this administration, under the leadership of Alhaji Ahmed Usman Ododo, has cleared a total of N98.8bn inherited from previous administrations, including the N50bn salary bailout granted to Captain Idris Wada’s administration,” he stated.
Idris attributed this achievement to a significant increase in internally generated revenue. “This success was made possible through the proactive efforts of the Chief Servant of our state, Alhaji Ahmed Usman Ododo, who empowered the Kogi State Inland Revenue Generation Agency with the mandate to enhance the state’s revenue generation,” he added.
However, existing data shows that the state’s IGR cannot fully cover its debt service costs.
Adamawa State generated N4.07bn in IGR in Q1 2025 but recorded debt servicing of N8.42bn, representing 206.9 per cent of IGR and 20.7 per cent of the N40.77bn spent in the quarter. The state relied on at least N4.35bn from its FAAC allocation of N37.03bn to meet debt commitments.
While debt service declined slightly from N8.71bn in Q4 2024, the drop in IGR from N4.61bn further exposed the state’s fiscal fragility.
Bayelsa State spent N13.55bn on debt servicing in Q1 2025, exceeding its IGR of N12.55bn by 107.9 per cent. Although FAAC inflows of N120.55bn were sufficient to cover the gap, the data points to a consistent pattern of IGR insufficiency.
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Debt servicing constituted 6.1 per cent of the state’s total Q1 expenditure of N221.54bn. In Q4 2024, Bayelsa had spent N11.98bn on debt servicing, against an IGR of N10.05bn, representing 119.2 per cent.
In Niger State, debt servicing stood at N12.43bn in Q1 2025 compared to an IGR of N12.13bn, meaning 102.4 per cent of local revenue was used to repay debt.
While this was an improvement from Q4 2024, when IGR was N5.44bn and debt service was N9.27bn, the state still required N296m in FAAC support to cover its repayment obligations. Debt service accounted for 23.2 per cent of the N53.51bn spent in the period.
Taraba State generated only N3.38bn internally in Q1 2025 but spent N7.83bn on debt servicing, equating to 232 per cent of IGR. Debt repayment made up 19.3 per cent of the state’s total expenditure of N40.47bn, and it required at least N4.45bn of its N52.39bn FAAC allocation to close the gap.
In Q4 2024, the state had spent N6.43bn on debt servicing against an IGR of N5.80bn, showing a deterioration in its revenue capacity.
Bauchi State reported an IGR of N4.97bn in Q1 2025, with debt servicing at N11.20bn, amounting to 225 per cent of its locally generated revenue. The state needed N6.23bn from its N47.23bn FAAC inflow to meet the shortfall.
Debt service made up 11.6 per cent of the total expenditure of N96.84bn. In Q4 2024, Bauchi generated N8.31bn and spent N16.68bn on debt service, a slightly better performance relative to IGR but a worse financial position overall due to declining revenue.
Collectively, the seven states generated N51.91bn in IGR in Q1 2025 and spent N98.36bn on debt servicing, approximately 190 per cent of what they earned internally. This figure represents a significant rise from the N65.26bn spent on debt repayment in Q4 2024, despite the modest growth in IGR.
In most of the states reviewed, debt service costs ranged from 6 per cent to 32 per cent of total government expenditure, illustrating how rising debt burdens are crowding out developmental spending. The over-reliance on FAAC disbursements to meet debt servicing needs exposes the fiscal vulnerability of subnational governments.
The National Orientation Agency earlier stated that the Bola Tinubu administration’s twin policies of ending petrol subsidy and floating the naira were “tremendous blessings to the states”, leading to a freeing up of revenues, with states witnessing a leap in federal allocations.
According to The PUNCH, eight states were to pay a combined N424.28bn in debt service and to borrow N1.21tn over the next two years, with financial commitments slated for 2025 and 2026.
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According to the states’ medium-term fiscal frameworks, the eight states in review – Abia, Adamawa, Bauchi, Borno, Kebbi, Osun, Benue, and Kano – were projected to experience varying debt service and borrowing trends. The analysis indicates differences between 2025 and 2026, with some states facing substantial increases in debt service while others focus on reducing borrowing.
The total public debt service for the eight states is projected to be N180.95bn in 2025, with an increase to N243.33bn in 2026, bringing the total public debt service for the two years to N424.28bn.
Regarding financing (loans), the total for 2025 is expected to be N616.25bn, while it is projected to decrease slightly to N593.09bn in 2026. This results in a total financing (loans) figure of N1.21tn for the 2025 – 2026 period.
These figures highlight the significant financial commitments these states are facing in the coming years, driven by rising debt obligations and continued borrowing.
The Director and Chief Economist at Proshare Nigeria LLC, Teslim Shitta-Bey, earlier warned that the rising debt burden on Nigeria’s subnational governments is likely to challenge their fiscal stability in the coming years.
He stressed that most state governments, along with the Federal Government, have failed to effectively manage their balance sheets.
Speaking to The PUNCH, Shitta-Bey said, “The challenge here is that most of the governments, including the Federal Government, are unable to manage their balance sheets properly. While borrowing might seem like an easy way to run operations, it is not necessarily the right approach.”
According to Shitta-Bey, borrowing should not be the default solution for governments. “Governments could consider longer-term debt structures that resemble equity, which might actually be more beneficial in the long run,” he explained.
He also called for a comprehensive register of national assets to help states raise capital. He used the example of the National Stadium, which has not been used for major activities for a while.
Shitta-Bey further lamented the underuse of state revenue bonds, which were originally designed to generate revenue. “States need to focus on raising revenue bonds, instead of general obligation bonds,” he said.
(PUNCH)
News
Lagos Govt Gives Computer Village Traders Ultimatum To Relocate To Katangowa

The Lagos State Government has given traders at the popular Computer Village in Ikeja an 18-month deadline to move to a new permanent site at Katangowa, in the Agbado/Oke-Odo Local Council Development Area.
The Permanent Secretary of the Ministry of Physical Planning and Urban Development, Gbolahan Oki, disclosed this during a stakeholders’ engagement with market leaders and traders on Tuesday.
According to him, the state government has provided the necessary infrastructure and facilities at the Katangowa site to ensure a conducive business environment once the relocation takes effect.
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“The government wants your cooperation to ensure the relocation comes to pass. The time is now. We have to make the project a reality. The relocation period is 18 months,” Oki said.
He explained that Computer Village currently sits on land originally designated as a residential area, which over time was converted into a bustling commercial hub without formal approval from the government.
Oki also revealed that plans to move traders from Ikeja to Katangowa have been in the works since 2006 but were stalled due to delays in completing the new site.
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Emphasizing Governor Babajide Sanwo-Olu’s commitment to inclusive governance, he noted that the stakeholders’ meeting was convened to carry traders along in the government’s plans.
“The governor is passionate about infrastructure development and the welfare of Lagosians. Katangowa has been designated as the permanent site for this market. It sits on 15 hectares of land, well-planned and strategically located near essential resources for your businesses.
“The present location in Ikeja was never meant to serve as a trading hub. What we are offering at Katangowa is a structured market environment that supports growth while addressing environmental and urban planning concerns. We want to work with you and jointly plan this relocation,” Oki said.
News
Ooni’s Palace Slams Oluwo Over ‘Ife Not Yoruba Origin’ Claim

The palace of the Ooni of Ife on Tuesday slammed the Oluwo of Iwo, Oba Abdulrosheed Akanbi, over his claim that Ile-Ife is not the origin of the Yoruba people.
Reacting to the comments, the Ooni’s spokesperson, Moses Olafare, dismissed the statement, saying, “No reasonable person will react to Oluwo’s comments.”
Oba Akanbi, known for his controversial views, had in a video posted on his Facebook page while conferring a chieftaincy title in his palace, insisted that “Ile-Ife has no Yoruba culture.”
Flanked by his chiefs, the Iwo monarch argued that the language spoken in Ile-Ife — widely regarded as the cradle of the Yoruba race — differed from mainstream Yoruba. He also questioned the use of certain expressions.
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“Ife is not the origin of the Yoruba race. Those people don’t speak our language. Their language is different. They refer to God as Eledumare, and there is nothing like Eledumare in the Yoruba language. What we have is Olodumare.
“Ife people will always say Olofin. If you ask them the meaning, they will tell you it means the owner of the palace. But in Yoruba, that is Alaafin. Ile-Ife has no Yoruba culture.
“I am the Arole Olodumare because I am here to tell you the true history. Iwo is where you can get the real history that was not even documented,” he said, stressing his determination to preserve his version of history.
Debates over the origin of the Yoruba and the authority of monarchs to confer titles have long been contentious.
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In August, The PUNCH reported a similar face-off between the Ooni of Ife, Oba Adeyeye Ogunwusi, and the Alaafin of Oyo, Oba Akeem Owoade, over the title of Okanlomo of Yorubaland, allegedly conferred on Ibadan businessman Chief Dotun Sanusi by the Ooni.
The Alaafin, through his media aide Bode Durojaiye, insisted no traditional ruler other than him had the authority to bestow a title covering the entire Yorubaland. He issued a 48-hour ultimatum to the Ooni to revoke the title or “face the consequences.”
In response, the Ooni’s spokesperson, Olafare, dismissed the ultimatum, saying the monarch had chosen to leave the issue “in the court of public opinion.”
“We cannot dignify the ‘undignifyable’ with an official response. We leave the matter to the public court of opinion, as it is already being treated. Let’s focus on narratives that unite us rather than those capable of dividing us. No press release, please. Forty-eight hours, my foot!” he wrote on Facebook.
News
[OPINION] Rivers: The Futility Of Power And The Illusion Of Victory

By Israel Adebiyi
Power is a strange thing. To some, it is a crown that dazzles; to others, it is a sword that conquers. Yet history, both ancient and modern, is replete with reminders that power is fleeting, fragile, and often fatal to those who cling to it without wisdom. Nigeria’s Rivers State has, in recent months, provided a theatre where this truth has played out in its rawest form, a play in which the actors ranged from elected governors to godfathers in high places, from lawmakers turned pawns to a weary citizenry who bore the bruises of political combat.
As you may have learnt, the democratically elected Governor Siminalayi Fubara is back in the saddle. What a traumatising six months it must have been for the man who thought being the Chief Security Officer of his state truly makes him the man in charge. What a tormenting time it must have been for the legislature, those who, entrusted with making laws, would rather sink the ship of state than allow Fubara to sail. And what excruciating experience it must have been for the people of Rivers themselves: to have their choice nearly swapped for a civilian in khaki, to watch their lives held hostage by political gladiators in a power struggle that never had their welfare at heart.
At the centre of this drama stood the godfather, one who straddles Abuja and Port Harcourt, ministering to the Federal Capital Territory while seeking to lord it over Rivers, unchallenged. His triumphs and setbacks are well-documented, but the bigger question remains: what has the political elite learnt from all this? From potential godsons, to godfathers, to supporters, to the rest of us, the truth is painfully clear, no one wins in a state of anarchy, not even the chest-beating King Kong.
The Rivers imbroglio reinforces a timeless principle: governance does not happen in chaos. The seat of power may be occupied, but when the instruments of state are weaponised against one another, the business of the people suffers. Schools do not function, hospitals languish, investments are scared away, and trust in government crumbles. A peaceful atmosphere is the precondition for governance, for no policy, no matter how well-crafted, can thrive in the soil of instability.
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In this sense, what happened in Rivers is not new. History shows us that the vanity of power games leaves behind a trail of ruins. Rome, mighty and invincible, crumbled not because its armies lost their strength but because its leaders indulged in intrigues, conspiracies, and betrayal, weakening the republic from within. In Africa, the ghosts of Liberia’s civil war and Sierra Leone’s dark decade still whisper lessons of how political egos, once unchecked, descend into rivers of blood where the people are the ultimate casualties.
Even in more stable democracies, we see shades of this futility. Recall the Watergate scandal in the United States: an overreach of power that forced President Nixon’s resignation, not because America lacked laws, but because one man believed his political survival was above the rule of law. In Zimbabwe, Robert Mugabe’s prolonged hold on power may have begun with promises of liberation but ended with economic collapse and national despair. In all these, the lesson is the same: unchecked power, exercised without restraint, consumes itself.
The real victims of Rivers’ crisis are not the gladiators in high office; they will always find soft landings. The true casualties are the people, the market woman in Port Harcourt whose business was disrupted by endless protests and palpable fears, the civil servant whose progress and commitment are beclouded by uncertainties, the student whose classroom leaks under the rain because the funds for renovation are trapped in political crossfire.
What is often forgotten in the heat of power play is that governance is not an abstract exercise; it is the daily bread of the people. When leaders quarrel, roads go untarred, hospitals go unequipped, and children go unfed. To reduce governance to a chessboard of egos is to mortgage the people’s welfare for vanity. This, tragically, is the recurring story in Nigeria’s democratic experiment.
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Philosophers have long wrestled with the meaning of power. Shakespeare, in Macbeth, captured it as “a walking shadow, a poor player that struts and frets his hour upon the stage and then is heard no more.” The story of Rivers is a fresh Nigerian adaptation of this drama. For months, power appeared to belong to one, then another, and then another still. Yet in the end, it was revealed that no one truly wielded power in its purest sense, because power without legitimacy, without the consent of the governed, and without the peace to implement vision, is no power at all.
The futility of the Rivers crisis holds lessons for Nigeria as a whole. Across our federation, godfatherism continues to haunt governance. From Lagos to Kano, from Anambra to Oyo, the tussle between political benefactors and their protégés has become a recurring decimal. Rarely do these battles end in progress for the people; more often than not, they end in paralysis.
The comparison need not be far-fetched. Look at Kenya, where post-election violence in 2007 consumed more than 1,000 lives and displaced hundreds of thousands. The fault line was political ego, the refusal to let the people’s will stand unchallenged. It took the Kofi Annan-led mediation to restore peace. In the Democratic Republic of Congo, decades of instability trace back to leaders who personalised power, treating the state as property and the people as pawns.
Rivers may not have descended into outright war, but the undertones of instability remind us that democracy is not guaranteed; it must be guarded. When politicians play roulette with the rule of law, they court a descent into chaos that ultimately swallows everyone.
The Rivers episode should compel us to reflect on the foundations of Nigeria’s democracy. For too long, politics has been driven not by institutions but by personalities. Our allegiance is more to godfathers than to constitutions, more to individuals than to principles. Yet sustainable governance is only possible when the rule of law, not the whims of men, governs the game.
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What does this mean in practice? It means state assemblies must not be reduced to errand boys of powerful interests. It means governors must respect their oaths of office, governing for all, not just for loyalists. It means party structures must operate with transparency, giving room for dissent without retribution. Above all, it means citizens must rise in defence of their democracy, insisting that their mandate cannot be traded on the altar of ego.
The Rivers drama may be easing, but the scars remain. It was a sobering reminder that power, when divorced from service, becomes poison. That democracy, when stripped of rule of law, becomes anarchy. That in the final analysis, no one truly wins when the people lose.
From the godfathers to the godsons, from the lawmakers to the electorate, we must all acknowledge a shared truth: we are losers when power games eclipse governance. The real triumph is not in who sits in Government House, but in whether that House delivers schools, hospitals, jobs, and peace.
Let Rivers be a lesson to Nigeria: that power is not an end in itself, but a means to service. That peace is not weakness, but strength. And that the greatest legacy any leader can leave is not monuments of ego, but institutions that outlast them.
For if Rivers has taught us anything, it is that governance cannot happen in a state of anarchy, and the futility of power is revealed when its pursuit leaves the people broken. Let us, therefore, rise to build a democracy where power serves the people, not the other way round.
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