Imo, Kogi, Kano Top List as States Borrow ₦457bn from CBN to Pay Salaries

In a bid to meet their salary obligations to civil servants, not less than 31 state governments across Nigeria have collectively borrowed a staggering sum of ₦457.17 billion through the Salary Bailout Facility (SBF) provided by the Central Bank of Nigeria (CBN).

The borrowing, aimed at averting salary crises and ensuring the smooth functioning of state governments, highlights the fiscal challenges faced by various states across the country.

Here are the top 10 states that benefited most from this financial intervention:

1. Imo State
   Imo State leads the pack with the highest borrowing amount of ₦20.46 billion. Despite its economic reliance on oil and agriculture, the state’s substantial public sector workforce and salary arrears necessitated significant borrowing to meet its financial obligations.
2. Kogi State
   Following closely is Kogi State, securing a loan of ₦20.26 billion. Despite its abundance of natural resources, economic challenges compelled the state to resort to borrowing for salary payments. Kogi State also maintains its status as the most expensive state to live in Nigeria.
3. Kano State
   Kano State, a major commercial and agricultural hub in Northern Nigeria, borrowed ₦20.21 billion. The state’s large civil service and efforts to maintain governmental stability contributed to this substantial borrowing.
4. Oyo State
   In fourth place is Oyo State, with a disbursement of ₦16.81 billion. Despite being one of the larger states by population and economy, Oyo State still required financial intervention to ensure timely salary payments.
5. Osun State
   Osun State holds the fifth spot with a loan amount of ₦15.93 billion. Despite its diverse economic activities and tourist attractions, the state’s reliance on central borrowing for salary payments underscores financial challenges.
6. Edo State
   With a disbursement of ₦15.76 billion, Edo State ranks sixth. The state’s rich history and cultural significance did not shield it from economic pressures necessitating financial assistance for salary payments.
7. Benue State
   Known as the “Food Basket of the Nation,” Benue State borrowed ₦15.7 billion. Despite its agricultural prowess, fiscal strains prompted the state to resort to borrowing to fulfill its administrative responsibilities.
8. Ondo State
   Ondo State, famous for cocoa production, borrowed ₦14.86 billion. The state’s reliance on federal allocations and this borrowing indicate a need for revenue diversification.
9. Kaduna State
   Kaduna State secured ₦14.47 billion in borrowing. As an industrial center in Northern Nigeria facing economic and security challenges, Kaduna’s borrowing reflects the urgency to meet salary obligations.
10. Abia State
    Abia State rounds up the top 10 with ₦14.27 billion disbursed for salary payments. Despite its commercial hub in Aba, economic challenges compelled the state to borrow to meet its financial obligations.

Here’s a tabulated view of the top 10 states that borrowed from CBN’s Salary Bailout Facility and the respective amounts: