₦airaland Forum

No fewer than 20 states of the federation borrowed about N458bn in the first half of 2025, findings by Saturday PUNCH have revealed.

This comes against the backdrop of a soaring external debt servicing burden gripping state governments.

Collectively, the states spent about N235.58bn on servicing external debt within the period, representing a sharp rise of N95.65bn or 68.4 per cent when compared with the N139.92bn recorded in the corresponding half of 2024.

According to experts, the surge underscores the mounting pressure of dollar-denominated debt repayments on state finances in the wake of the naira’s depreciation.

An analysis of the Federal Account Allocation Committee disbursement data released by the National Bureau of Statistics shows that a total of N10.13 trillion, including statutory revenue, Value Added Tax, Electronic Money Transfer Levy and Exchange Rate Difference, was shared among the three tiers of government in the first half of this year.

Out of this, the states received N3.425tn, a 42.96 per cent increase from the N2.396tn they got in the first six months of 2024.

In H1 2024, the states received N379bn in January, N366.9bn in February, N396.8bn in March, N403bn in April, N388.4bn in May, and N461.97bn in June.

But in the same period this year, allocations surged to N590.6bn in January, N562.19bn in February, N530.45bn in March, N556.74bn in April, N577.84bn in May, and N607bn in June.

Despite the higher inflows, an analysis of states’ Q2 budget implementation reports showed that about 20 of them still resorted to fresh borrowings, both foreign and domestic, amounting to N457.66bn in the first half of 2025.


Leading the pack is Oyo State, which took a N93.4bn domestic loan, followed by Kaduna and Lagos, which took N62bn (foreign) and N50bn (domestic) loans, respectively.

States that took foreign loans include Gombe (N20.3bn), Zamfara (N28bn), Katsina (N20.7bn), Kebbi (N7.4bn) and Jigawa (N10.98bn).

While Bauchi took both domestic and foreign loans totalling N26.3bn, Borno, Taraba, Sokoto, Niger, Kwara, and Ekiti borrowed N18.2bn, N18.7bn, N15bn, N25.8bn, N2.18bn and N19.8bn respectively in foreign loans.

The foreign loan list also includes Ondo (N5.6bn), Abia (N7bn), Ebonyi (N10.9bn) and Enugu (N10.7bn).

Analysts warn that the continued reliance on foreign loans exposes states to even greater fiscal risks in the face of a weakening naira.


“Since most of the debts are dollar-denominated, every depreciation of the local currency automatically inflates repayment obligations, forcing states to channel a larger share of their revenues into debt servicing at the expense of development projects,” says a Professor of Economics at the Ekiti State University, Taiwo Owoeye.

Beyond repayment costs, Owoeye noted that heavy external borrowing also undermines states’ financial autonomy.

“By taking on more foreign obligations, many states risk mortgaging future federal allocations to meet repayment schedules, leaving them with little room to respond to emergencies or fund critical sectors such as health, education, and infrastructure,” he explained.

Source: https://punchng.com/20-govs-borrow-n458bn-amid-rising-debts

I still don't understand how this loan works.

Is it that the state's account is credited with the the loan amount or the loan usually goes to the states in the form of credit facilities for project work?

If the former is the case, how come it is only governors and some govt top shots that get to know while conditions remain the same for civil servants, if not even worse?

E get why I dey ask this question. The money wey I no follow chop, e get as e go be to pay back. I want to know how the loan dey come first. Then I will examine how it is spent.

The worst is that you can't point to any reasonable thing they used the loan to achieve

It should be criminalised that,no government should take loans from any sources again because, nothing tangible can be shown from it.
Government that take loans to share to individuals is not a serious government.
This leads to mismanagement and unaccountability of resources.

They keep borrowing
No accountability
Nobody is saying anything
With all the subsidy removal and more monies to politicians. Nigerians are being heavily taxed, providing most social amenities for themselves, no good roads, dilapidated schools, no good drainage, nothing nothing

Let me ask again, what exactly are we benefitting from the government

Kaycee9242:
The worst is that you can't point to any reasonable thing they used the loan to achieve

I can at least point to reasonable things Otti has done and have been doing in Abia

Nigerian governors are the biggest cause of this country's backwardness. Most of them are just very evil, corrupt and USELESS

They Borrow to Loot & Lunder Away , NOT For Projects

MrIcredible:
Nigerian governors are the biggest cause of this country's backwardness. Most of them are just very evil, corrupt and USELESS

The responsibility for Nigeria's backwardness lies predominantly with our governors, accounting for approximately 90% of the problem. Despite this fact, we shift the blame onto the president rather than hold governors accountable for their role in the nation's stagnation.

Seyi done borrow money for the coronation of the new Olubadan. Others are borrowing 25b Seyi get mind dey borrow 93B on top brown roof.

Yet no health care because governor's still travel outside and no good roads. The worst of all economy of the state is very poor but asked them where the money is put at ND watch their minions lie to support them

Kaycee9242:
The worst is that you can't point to any reasonable thing they used the loan to achieve

Go to ondo state you can never point to anything that this what out governor is using the money to do

You can't run a country with propaganda.

Where is the 3 times more money Tinubu is giving governors?

Kudos to soludo. Anambra no dey the list. Dude is trying very well.

We tot the only good things coming out of most useless gov was the fact they were paying up debt not knowing most of them are even borrowing more to squander despite the improved FAAC

Richtaiwo:
I still don't understand how this loan works.

Is it that the state's account is credited with the the loan amount or the loan usually goes to the states in the form of credit facilities for project work?

If the former is the case, how come it is only governors and some govt top shots that get to know while conditions remain the same for civil servants, if not even worse?

E get why I dey ask this question. The money wey I no follow chop, e get as e go be to pay back. I want to know how the loan dey come first. Then I will examine how it is spent.

. Dem nodey explain all dat one for una Voltron meeting? Oh so you nodey follow chop the money but you dey Sergio Ramos and Taribo west dem blindly..wondafuu !!

Even upon how their monthly money from government have increased for over a year now, what do they still need the loan for?

What have they done with the loans?

Like master, like slaves



Please don't make racist and tribalistic comments on this section

Will it ever be enough. Country don make gbim but Dem must still chop national cake wey done finish

Nairalndeds, these are your state governors but y'all only see Tinubu because he's either not from your tribe or not in your party.


Getting loan is not a bad idea but it is demonic to get loan without using it for the intended purpose.

State governors are receiving more money than before.

I thought our zombies said govs are no longer borrowing and that only happened under PDP and Buhari who was their previous god
This report is fake
I trust Tinubu
He has given money yanfu yanfu to the states so much that they don't even know what to do with it
Some of them even use it for toilet seat now
How can they borrow

DMerciful:
You can't run a country with propaganda.

Where is the 3 times more money Tinubu is giving governors?

It's not hidden, the records are there if you really want to know but it's very obvious from your comment that you're not interested because of hate and bitterness

MrIcredible:
Nigerian governors are the biggest cause of this country's backwardness. Most of them are just very evil, corrupt and USELESS

Even the president is a former gov
Spits
And some zombies dey support am

Kukutente23:
Even the president is a former gov
Spits
And some zombies dey support am

And your pay master is also a former governor


Change your way.

Zionmdde:
They keep borrowing
No accountability
Nobody is saying anything
With all the subsidy removal and more monies to politicians. Nigerians are being heavily taxed, providing most social amenities for themselves, no good roads, dilapidated schools, no good drainage, nothing nothing

Let me ask again, what exactly are we benefitting from the state government

Fixed. The news is about how state government are mortgaging people's future

Moroccoguy:
Seyi done borrow money for the coronation of the new Olubadan. Others are borrowing 25b Seyi get mind dey borrow 93B on top brown roof.

Try and make sense.

When was the coronation and when was the money borrowed?

Upon the whole triple money the FG is giving them Abi ma still audio?

Since most of the debts are dollar-denominated, every depreciation of the local currency automatically inflates repayment obligations, forcing states to channel a larger share of their revenues into debt servicing at the expense of development projects,” says a Professor of Economics at the Ekiti State

Oyo state Gov recently borrowed additional 300bn in second half.. we go dey alright