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
Bauchi Govt Sensitises 14,000 LG Staff On Promotion Examination
The Bauchi State Local Government Service Commission has conducted a 2-day Sensitisation workshop for 14,000 local government staff on how to excel in the forthcoming promotion examination.
Speaking before the commencement of the workshop, Alh. Abubakar Wabi, the Chairman, Local Government Service Commission, said that the importance of the workshop for the LG workers could not be over-emphasised.
He said according to the tenets of examination policy, the main thrust of the exam, apart from paving the way for promotion, was to acquaint the staff with regulatory professional and general knowledge.
This, he added, contributed immensely in boosting their capacity and reading culture as well as increase effective performance of their duties for efficient service delivery.
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According to him, the administration of Gov. Bala Mohammed of the state has resolved to sustain the examination policy and do everything within its reach to strengthen it for the benefit of civil servants and the Civil Service.
“The conduct of this sensitisation workshop is therefore a continued demonstration of the governor’s commitment and concern towards the upliftment of Local Governments as well as human capital development,” he said.
Also speaking, Mr Nasir Dewu, the Overseeing Permanent Secretary, Local Government Service Commission, said promotion examination has the main merit of keeping staff up-to-date with the staff regulations, procedures and General Knowledge.
These, he said, were vital for ensuring effective, efficient and productive Local Government Service.
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“I am happy to inform you that the success witnessed in the 2023 edition of the examination held in 2024 is a further signal that the policy is a worthwhile one.”
He commended governor Mohammed for his commitment to ensure the examination policy’ success in the state.
Dewu urged the participants to reciprocate the kind gestures of the governor by being more dedicated to duties as well as contributing immensely in the revamping efforts of the Local Government Service.
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In his address, Alh. Gambo Magaji, Dugge Management Services Limited (DMSL) the Consultant of the promotion examination, called on the participants to listen attentively to the papers that would be presented during the workshop.
Magaji, who said that the resource persons were experienced retired and serving technocrats billed to prepare them for the examination and beyond, added that the examination questions won’t be outside of what they would be taught.
The sensitisation workshop was carried out to help the staff writing the 2024 promotion examination on December 27 to excel.
News
Edo SSG Calls On Media To Support Govt Policies, Assures Better Welfare
The Secretary to the Edo State Government (SSG), Umar Musa Ikhilor, has called on members of the media to continue to support government policies and programmes through objective, professional and balanced reportage, describing them as critical stakeholders in governance.
Ikhilor made the call while receiving members of the Governor’s Press Crew, Edo State Government House, led by the Chief Press Secretary, Ebojele Akhere Patrick, PhD, who paid him a courtesy visit in his office as part of the season’s greetings.
Responding, Ikhilor expressed gratitude for the gesture, noting that it was thoughtful and symbolic.
According to him, the media plays an indispensable role in governance and public accountability.
He said, “Whatever it is that we do, it still will not matter much if we do not have you guys to be our eyes and our ears to report some of those things so that Edo people will be aware and people globally will be aware, and that is where you come in very important.”
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The SSG further emphasized the strategic role of journalists, describing them as the fourth estate of the realm.
Ikhilor stated, “Because without the press, the government is blind, deaf and dumb. You are the ones we can see with and you are the ones we can hear with and talk with as well. So we consider you very critical stakeholders in the affairs of governance. That is the sincere sentiment of the government,”
He acknowledged the challenges faced by the media, particularly poor working conditions, and assured that the government was aware and already taking steps to address them.
He said, “Your working conditions have not been the best one would have expected. These are some of the things we have made recommendations to His Excellency the Governor, and he has promised from next year, after this budget by January, with a new budget that is coming, there will be something substantial to cater for the media.”
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Explaining the initial constraints of the administration, Ikhilor noted that spending was limited by budgetary provisions inherited at the time the government assumed office.
He explained, “When we came in, we met a budget already prepared. We just tried and tinkered with it to pass it as at then November–December. Once you don’t have an appropriation, you can’t spend. That would be a criminal offence,”
The SSG urged journalists to remain professional and committed to truth, regardless of circumstances.
He said, “Your responsibility as a journalist, your first training, your first duty, is the pursuit of truth wherever you find it. Reporting should not be based on a special relationship. Professionalism actually means you are consistent and you deliver, whether the day is good or the day is bad.”
He encouraged the media to continue to support government policies and programmes through accurate and diligent reporting, stressing the importance of teamwork in effective communication.
Commending the press crew, Ikhilor added, “I have seen exceptional reports from a lot of reporters here. Our camera men have done very well in terms of proper coverage. Everybody needs to work together as a team for the story to come alive and for the story to be complete.”
Earlier, while presenting a gift on behalf of the team to the SSG in appreciation of his leadership and support, the Chief Press Secretary, Ebojele Akhere Patrick, PhD, said, “In the spirit of the season, I present this to you on behalf of the Governor’s Press Crew in appreciation of your effort as the engine room of government.”
News
Forest Reserve: Okpebholo Broker Peace Between Host Communities, Investors
Governor Monday Okpebholo of Edo state on Wednesday brokered peace between host communities and investors on the use of government forest reserve land for agricultural purposes and investors.
The governor, who was represented by his deputy, Hon Dennis Idahosa, appealed to the various stakeholders to always tow the line of peace at all times
Okpebholo noted that by virtue of the Land Use Act, the land in dispute belongs to the Edo state government.
The governor blamed activities of the previous administration of the state for the hostility between the investors and the host communities over the land that spreads across Ovia South West and Ovia North East Local Government Areas.
He accused the previous administration of arbitrarily allocating the said forest reserve to investors to without due consultation with host communities of Iguomon, Egbetta and Usen.
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He stated that the meeting with stakeholders became expedient in order to straighten out facts and restrategize.
“We had three investors that want to invest in oil palm production in the council areas, which is in line with the vision of Governor Monday Okpebholo to turn the state into investment heaven.
“Today, we met with the critical stakeholders of Ovia South West and Ovia North East to ensure all interests are captured.
“The investors were here, the community leaders, led by the Elawure of Usen, Oba Wilson Oluogbe II, and Palace Chiefs all came.
“Initially, a 5 percent buffer was proposed by the previous administration, but based on the conversation we had today, the investors agreed to increase to 10 percent.
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“Haven put into consideration that Ovia is an agrarian area, with 80 percent of people relying on subsistence farming for survival,” he stated.
Okpebholo maintained that part of the resolution involved the raising of a memorandum of understanding (MoU) by investors with their host communities to keep all parties involved in decision making.
IHe declared, “Our administration is people oriented. The interest of investors are paramount to us as well as the interest of our people.”
The Secretary to the Edo State Government (SSG), Musa Ikhilor stated that before the said land allocation to investors, the previous administration was supposed to have carried out diligent studies and a NEEDS assessment in relations to the communities.
He said basic steps ought to have been followed, such as meetings with Community Development Associations (CDA) with agreements reached on community development.
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Historically, Ikhilor said Usen community started as a farm stead hence the need to carry such a community along in decision making on issues that affect their means of livelihood.
He further encouraged investors to engage in Corporate Social rlResponsibility (CSR) acts as well as put in place activities that promote job creation and general welfare of their host.
The Elawure of Usen, Oba Wilson Oluogbe II praised the Edo State Government for its intervention.
He appealed for communities to be carried along when critical decisions are being made, especially on issues that affect their livelihood.
The investors, included: Nimbel Shaw Limited; Professional Support Farms Limited and Steve Integrated Limited, commended Edo state government for the peaceful resolution of the matter.
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