Several states’ governments have found themselves in a financial bind, unable to meet their obligations to pay salaries without outside assistance. This circumstance has resulted in unprecedented reliance on the Central Bank of Nigeria (CBN) for what is known as the Salary Bailout Facility.<<<<READ ARTICLE IN FULL HERE>>>>>
No less than 31 state governments have borrowed N457.17 billion to ensure that their civil staff do not go without their hard-earned wages. This article looks at the top ten states that have gone to the CBN for wage payments, giving light on the economic issues they confront.
1. Imo State
Imo State tops the list, having borrowed a large sum of N20.46 billion from the CBN. The state’s economy, which is highly based on oil and agriculture, has failed to keep up with the needs of its massive public sector workers, necessitating extensive borrowing to meet payroll obligations.
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2. Abia State
Abia State concludes the list with a loan of N14.27 billion. The state, known for its commercial hub in Aba, has had economic issues that have forced it to borrow money for salary payments.
The states’ reliance on the CBN for pay shows Nigeria’s deeper economic woes. From diversification to managing huge public sector workforces, the necessity for fiscal support from the central bank emphasizes the importance of long-term economic policies and plans.
3. Oyo State
Oyo State, with its lively metropolitan core of Ibadan, has acquired a loan of N16.81 billion. Despite its large population and economy, Oyo has to seek financial assistance from the CBN to meet its salary obligations.
4. Osun State
Osun State, which is famed for its tourist attractions such as the Osun-Osogbo Sacred Grove, borrowed N15.93 billion. The state’s diversified economic operations have been insufficient to eliminate the requirement for central borrowing for wage payments.
5. Edo State
Edo State, with its rich historical and cultural significance, secured a loan of N15.76 billion. In the face of fiscal constraints, the state has requested financial assistance from the CBN in order to satisfy its governmental responsibilities.
6. Benue State
Benue, the “Food Basket of the Nation,” required a loan of N15.7 billion from the CBN. Despite its agricultural strength, the state has struggled to manage its administrative responsibilities, forcing it to borrow money for salaries.
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7. Kano State
Kano State, Northern Nigeria’s main economic and agricultural powerhouse, has borrowed N20.21 billion. The significant loan amount reflects the state’s massive civil service and efforts to keep government services stable in the face of economic difficulties.
8. Ondo State
Ondo State, known for its cocoa output, borrowed N14.86 billion. The state’s reliance on federal grants and borrowing suggests that it has to diversify its revenue base in order to continue performing administrative tasks.
9. Kogi State
Imo State is closely followed by Kogi State, which has borrowed N20.26 billion. Despite its advantageous location and significant natural mineral resources, Kogi is facing economic issues that have forced it to borrow money for salaries. It is worth noting that Kogi is widely regarded as Nigeria’s most costly state to live in.
10. Kaduna State
Kaduna State, a major industrial center in northern Nigeria, follows with a loan of N14.47 billion. The state’s borrowing highlights the economic challenges it is facing, which are exacerbated by insecurity issues.<<<<READ ARTICLE IN FULL HERE>>>>>
