10 states have been listed as receiving the highest combined funds totalling about ₦168 billion from the CBN.
The Salary Bailout Facility (SBF), an intervention developed by the Central Bank of Nigeria (CBN) to cushion the fiscal pressures faced by states, has shared a total of ₦457.17 billion to 31 states.
The total amount was borrowed by the states between 2015 and 2023 to enable them to pay current salaries and also settle the backlog of salaries in their respective civil services. The 31 state governments according to the CBN, are collectively owing ₦339.9 billion.
There have been concerns about the financial status of the affected states as this development has questioned their revenue generation capacity as their wage bills surpass internally generated revenues.
10 states that benefitted from FG’s ₦457bn salary bailout funds
Out of the 31 states that benefited from the SBF, 10 states have been listed as receiving the highest combined funds totalling about ₦168 billion from the CBN.
1. Imo State
APC-led Imo State came in first place as the state borrowed the highest amount of ₦20.46 billion. The large borrowing has also been attributed to the state’s large public service workforce.
2. Kogi State
Second on the list is APC-controlled Kogi State with a loan of ₦20.26 billion. With an all-time inflation rate of 37.98% and the highest food inflation rate of 46.32%, Kogi State has been dubbed the most expensive state in Nigeria.
3. Kano State
Kano State borrowed ₦20.21 billion during the period. On a year-on-year basis, Kano, which is led by the NNPP recorded the slowest rise in food inflation at 30.08% in January 2024. Its large borrowing, however, is attributed to the state’s large number of civil servants
4. Oyo State
Oyo State, currently led by the PDP came in fourth place with a borrowing of ₦16.81 billion. The state, despite its size by population and its economic status, is still listed as a high borrower as it aimed to offset its fiscal responsibilities.
5. Osun State
PDP-controlled Osun State came in fifth position with a loan amount of ₦15.93 billion. The state also sought help from the CBN to settle its salary obligation to its civil servants.
The Salary Bailout Facility (SBF) is an intervention developed by the Central Bank of Nigeria [Pulse]
6. Edo State
Edo state which is controlled by the PDP borrowed ₦15.76 billion to help with salary payments in the state
7. Benue State
APC-controlled Benue State, despite its tag as the country’s food basket, came sixth on the list requiring ₦15.7 billion to pay salaries.
8. Ondo State
Ondo State, currently led by the APC, came next with borrowing of ₦14.86 billion. Despite its huge agricultural potential, like other states, Ondo still depends on the CBN for help in offsetting its workers’ salaries.
9. Kaduna State
Kaduna State came next with ₦14.47 billion. To stay in line and maintain stability in the civil service, the APC-governed state has turned to the SBF for help.
10. Abia State
Abia State now controlled by the Labor party came in tenth position with an amount of ₦14.27 billion borrowed for salary payments.
