Benue named among top 10 states that borrowed from CBN to pay salaries

According to Nairametrics: Not fewer than 31 state governments in Nigeria resorted to borrowing a total of N457.17 billion to fulfill salary obligations to their civil servants. This borrowing was made possible through the Salary Bailout Facility (SBF), an initiative by the Central Bank of Nigeria (CBN).

Listed below are the top 10 states that received the largest disbursements from this loan:

10. Abia State Abia State secured the tenth position, receiving N14.27 billion for salary payments. Known for its bustling commercial center in Aba, renowned for crafts and footwear, the state has faced economic challenges prompting this borrowing.

11. Kaduna State Kaduna State followed closely with N14.47 billion. As a significant industrial hub in Northern Nigeria, Kaduna’s borrowing underscores the economic strains it faces, compounded by security issues.

12. Ondo State Ondo State, famed for its cocoa production and vibrant cultural heritage, borrowed N14.86 billion. The state’s reliance on federal allocations and this borrowing highlights the necessity to diversify revenue sources.

13. Benue State Dubbed the “Food Basket of the Nation,” Benue State required N15.7 billion. Despite its agricultural productivity, the state’s borrowing reflects fiscal pressures in managing its governmental functions.

14. Edo State Edo State ranked sixth with a disbursement of N15.76 billion. Renowned for its historical significance and as a cultural epicenter of the ancient Benin Empire, the state sought financial assistance to meet its obligations.

15. Osun State Osun State secured the fifth spot with a loan of N15.93 billion. Known for its tourism sites such as the Osun-Osogbo Sacred Grove, the state’s diverse economic activities still necessitate central borrowing for salary payments.

16. Oyo State In fourth place is Oyo State, which received N16.81 billion. As one of Nigeria’s most populous and economically significant states, especially with Ibadan as a major urban center, the state turned to the CBN for fiscal aid.

17. Kano State Kano State, a key commercial and agricultural center in Northern Nigeria, borrowed N20.21 billion. This substantial amount reflects its sizable civil service and efforts to ensure stability in government services.

18. Kogi State Just below the top borrower is Kogi State, with a loan totaling N20.26 billion. Despite its strategic location and abundant natural resources, economic challenges prompted the need for borrowing to meet salary obligations. Kogi State is also recognized as the most expensive state to live in Nigeria.

19. Imo State Leading the list is Imo State, which borrowed the highest amount at N20.46 billion. Imo’s economy heavily relies on oil and agriculture, but the substantial size of its public sector workforce and accumulated salary arrears likely compelled significant borrowing to manage salary payments.