The Senate President, Godswill Akpabio, on Tuesday mentioned that state governors not must borrow funds to pay staff’ salaries as a result of financial reforms carried out by the President Bola Tinubu’s administration.
Mr Akpabio acknowledged this whereas addressing lawmakers on the resumption of plenary after a two-month and two-weeks annual recess.
“I can confidently say that via the engineering of President Bola Tinubu and his crew, no state authorities in the present day is borrowing to pay salaries. So, for this, we are saying kudos to the administration,” he mentioned.
Nigeria has over time relied closely on loans from worldwide monetary establishments to finance infrastructure initiatives.
In Might, President Tinubu sought the Nationwide Meeting’s approval to borrow $21.5 million and ¥15 billion, together with a €65 million grant.
The federal government claimed the funds will likely be used to help key infrastructure and safety initiatives, together with the growth of energy grids and transmission strains, growth of irrigation techniques to strengthen meals safety, set up of a nationwide fibre optics community, procurement of fighter jets to spice up nationwide safety, and enhancement of rail and street infrastructure throughout the geopolitical zones.
Equally, many state governments have, over time, resorted to borrowing to pay staff’ salaries. As an illustration, Gombe State Governor Muhammadu Yahaya revealed that between 2013 and 2019, the earlier administration within the state borrowed about ₦1.3 billion month-to-month to fulfill wage obligations.
Below the Central Financial institution of Nigeria’s (CBN) Wage Bailout Facility (SBF), a number of states additionally obtained loans to offset wage arrears.
In accordance with a Nairametrics report, 31 state governments collectively borrowed ₦457.17 billion via the SBF to pay salaries. States corresponding to Imo, Kogi, Kano, Edo, Benue, and Osun had been amongst these listed.
As well as, studies present that between January and June 2023, state governors borrowed about ₦46.17 billion from three business banks, Entry, Zenith, and Constancy to pay salaries.
For instance, Entry Financial institution recorded an impressive steadiness of ₦58.84 billion in state wage bailout services as of June 30, 2023, down from ₦101.81 billion in December 2022.
Nevertheless, because the elimination of gasoline subsidy, studies point out that allocations to state governments have tripled in some instances.
President Tinubu has argued that the coverage has considerably improved the monetary standing of state governments.
Supporting this declare, Kaduna State Governor Uba Sani disclosed that earlier than the subsidy elimination in Might 2023, the state needed to borrow to pay salaries, however it could actually now meet its wage obligations with out borrowing and even function with a surplus.
The improved income has enabled some states to lift staff’ salaries above the ₦70,000 nationwide minimal wage. Lagos and Rivers now pay ₦85,000, whereas Enugu, Akwa Ibom, Niger, and Bayelsa pay ₦80,000 to their staff.
Condolences to victims
In his tackle, Mr Akpabio commiserated with victims and households affected by current tragedies throughout the nation.
“Our nation has walked via each shadow and sunshine whereas we had been away. We grieve with the households who misplaced their family members within the merciless boat tragedy on the Niger River in Kogi State, and within the bloody outrage at a mosque in Katsina.
“We mourn additionally the 12 forest guards slain in Oke-Ode, Kwara State, minimize down whereas defending our surroundings — martyrs of service who remind us that insecurity is aware of no boundaries,” he added.
Mr Akpabio additionally sympathised with victims of flooding in Bayelsa, Sokoto, Zamfara, and different states.
“We commiserate with our compatriots throughout the flood-ravaged states of Bayelsa, Sokoto, Zamfara and others, because the 2025 flood season continues to uproot lives and destroy livelihoods.
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“We urge pressing coordination between the federal and sub-national governments to mitigate these devastations earlier than they change into annual calamities. To each residence by these disasters, insecurity, starvation, and hardship, we prolong to them the hand of fellowship and the prayer of consolation. We promise them that we will not flinch from the responsibility of reduction and redress for our folks.
“Whereas our hearts grieve, our hopes endure due to glimmers of progress. Nigeria’s oil manufacturing has climbed towards 1.8 million barrels per day, pushed by reforms and renewed investor confidence. We should be sure that this blessing doesn’t change into one other fleeting windfall, however a basis for fiscal self-discipline, infrastructure renewal, and job creation,” he mentioned.
