Top 10 States That Borrowed From The CBN To Pay Salaries In Nigeria

Not less than 31 state governments in Nigeria borrowed N457.17 billion to pay salaries to their respective civil servants. This borrowing was facilitated through the Salary Bailout Facility (SBF), an intervention by the Central Bank of Nigeria (CBN).

Here are the top 10 states that benefitted most from the loan:

10. Abia State


Abia State secured the tenth position with an amount of N14.27 billion disbursed for salary payments. Known for its commercial hub in Aba, which is famous for crafts and footwear, the state has had to navigate economic challenges, likely leading to this borrowing.

9. Kaduna State


Kaduna State follows with N14.47 billion. As a key industrial center in Northern Nigeria, Kaduna’s borrowing underscores the economic pressures faced by this state, which is also struggling with cases of insecurity.

8. Ondo State


Ondo State, renowned for its cocoa production and rich cultural heritage, borrowed N14.86 billion. The state’s reliance on federal allocations and this borrowing indicates a need to diversify its revenue base.

7. Benue State


Known as the “Food Basket of the Nation,” Benue State required N15.7 billion. Despite its agricultural prowess, the state’s need to borrow points to fiscal strains in managing its administrative responsibilities.

6. Edo State


With a disbursement of N15.76 billion, Edo State is sixth on the list. The state, famous for its rich history and as a cultural nerve-center of the old Benin Empire, has sought financial intervention to meet its governmental obligations.

5. Osun State


Osun State, with a loan amount of N15.93 billion, holds the fifth spot. Known for its tourist attractions like the Osun-Osogbo Sacred Grove, the state’s economic activities are diverse, yet salary payment requires central borrowing.

4. Oyo State


In fourth place, we have Oyo State which obtained N16.81 billion. As one of the larger states by population and economy, particularly with Ibadan being a major urban center, the state still had to turn to the CBN for fiscal support.

3. Kano State


Kano State, a major commercial and agricultural hub in Northern Nigeria, borrowed N20.21 billion. This substantial amount reflects its large civil service and the state’s efforts to maintain stability in its government services.

2. Kogi State


Just a notch below the top borrower is Kogi State, with a loan of N20.26 billion. The state has a strategic location with several natural mineral resources but still faces economic challenges leading to the need for borrowing to pay salaries. The state is also the most expensive state to live in Nigeria.

1. Imo State


At the top of the list is Imo State, which borrowed the highest amount at N20.46 billion. Imo’s economy is heavily reliant on oil and agriculture, but the size of its public sector workforce and the huge burden of salary arrears has likely necessitated significant borrowing to manage salary payments.

About unclemtech

Check Also

10 Key Impacts To Expect From Dangote’s Diesel Price Cut To N1,000

The recent decision by the Dangote Petroleum Refinery to slash the price of diesel from …

Leave a Reply

Your email address will not be published. Required fields are marked *