States and local governments in Nigeria paid back N547.52 billion in bank loans over one year. More money from the Federation Account helped them do this.
Okay News reports that Central Bank of Nigeria data showed banks lent N2.68 trillion to states and councils in June 2024. By June 2025, this dropped to N2.13 trillion, a 20.4 percent reduction.
The biggest drop happened between May (N2.45 trillion) and June 2025 (N313 billion cleared).
Money shared from the Federation Account jumped. States and councils got N12.67 trillion in 2025, up from N8.96 trillion in 2024.
With extra funds for oil-producing states, totals rose to N14.28 trillion from N10.31 trillion.
States received N7.31 trillion in 2025 compared to N5.19 trillion before. Councils got N5.35 trillion against N3.77 trillion.
Monthly payments stayed higher throughout 2025. October reached peaks for both.
High interest rates encouraged repayment. The Central Bank kept rates high most of the year before a small cut.
Extra cash allowed debt reduction. It eased pressure from costly loans.
Some states still face heavy debt burdens. Experts suggest alternatives like partnerships with private companies and better tax collection.
This repayment shows careful money management. It frees funds for roads, schools, and services.
Lower borrowing costs support long-term stability. It helps states plan better for growth.
