31 States Accumulate N330 Billion Salary Bailout Debt From CBN

31 States Accumulate N330 Billion Salary Bailout Debt From CBN

A recent document from the Central Bank of Nigeria (CBN) has revealed that 31 states have collectively amassed a debt of N330.9 billion to the apex bank, which was obtained as salary bailout funds between 2015 and 2023…..READ ALSO Lassa Fever: NCDC Reports 20 Deaths Across 16 States

The disclosure was made in the CBN’s Salary Bailout Facility report, which is part of the N10.3 trillion intervention fund initiated during the tenure of former CBN governor, Godwin Emefiele.

While the current CBN governor, Olayemi Cardoso, has pledged to refocus the bank’s efforts on its primary functions, the report indicates that 31 state governments benefited from the bailout initiative, receiving a total disbursement of N457.17 billion.

Despite this significant financial support, the states collectively owe N117.21 billion in principal repayment and N45.21 billion in interest repayments. Additionally, an overdue amount of N1.31 billion remains outstanding.

Among the top beneficiaries of the bailout facility are Imo, Kogi, Kano, Oyo, and Osun states, which received substantial amounts ranging from N15.93 billion to N20.46 billion.

In the previous year, state governments resorted to borrowing approximately N46.17 billion from three banks to cover salary payments between January and June. Access Bank recorded the highest loan disbursement of N42.97 billion, followed by Zenith Bank with N1.78 billion and Fidelity Bank with N1.42 billion.

This revelation comes amidst a broader concern about the growing debt burden of both the federal and state governments, which reached a staggering N97.341 trillion in the fourth quarter of 2023, as reported by the Debt Management Office.