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24 states can’t pay salaries without FG allocation – Budgets
At least 24 states of the federation will not be able to pay workers salaries this year without having to wait for federal allocations from the central government, findings by journalists have revealed.
Only 11 out of the 36 state governments of the federation can independently pay their workers’ salaries without depending on federal allocations, according to an analysis of the state governments’ approved budgets for the 2024 fiscal year.
The states with robust internal revenue are Lagos, Kano, Anambra, Edo, Enugu, Imo, Kaduna, Kwara, Osun, Ogun and Zamfara.
The approved budgets are also contained in Open States, a BudgIT-backed website that serves as a repository of government budget data.
While the budgets of 35 states have been made public, Rivers State budget could not be accessed neither has it also been uploaded the platform.
According to the analysis the budgets data, 24 states cannot fund salaries payments from their Internally-Generated Revenue and, as such, may have to rely on the Federal Government allocations or borrowing from banks and related institutions.
The development also means that the respective wage bills of the affected states surpassed their various IGRs, raising concerns about workers productivity and state governments’ efficiency in internal revenue generation.
The 24 states are Bayelsa, Ondo, Yobe, Sokoto, Taraba, Plateau, Oyo, Niger, Nasarawa, Kogi, Kebbi, Katsina, Jigawa, Gombe, Ekiti, Ebonyi, Borno, Benue, Bauchi, Adamawa, Akwa-Ibom, Cross River, Abia, and Delta.
The development is coming amidst clamour for wage increase by labour unions at both the federal and state levels, following the rising cost of living on the aftermath of fuel subsidy removal and unification of the foreign exchange markets by the current administration.
The Nigerian Labour Congress has consistently maintained that if inflation continues to rise, the organised labour may have no choice but to insist on a new minimum wage of N1m for Nigerian workers. The government however has rejected the demand.
In the first half of 2023, state governments borrowed about N46.17bn from three banks to pay salaries between January and June 2023. The findings were based on an analysis of the half-year 2023 financial statements of Access Bank Plc, Fidelity Bank, and Zenith Bank Plc
The press observed that the states borrowed the most from Access Bank in six months, with a record of N42.97bn loan.
This was followed by Zenith Bank (N1.78bn borrowed) and Fidelity Bank (N1.42bn borrowed) within the six-month period.
In 2023, state governors got the most FAAC allocations in at least seven years. The rise in FAAC allocations to the three tiers of government especially states followed the petrol subsidy removal and currency reforms of the current administration. The reforms have reportedly led to a 40 per cent boost in income.
Experts believe the projected revenue increase should have reduced state governments’ appetite for more borrowings.
In an interview recently, Kaduna State Governor, Uba Sani, claimed that state governments were borrowing to salaries in the past but the removal of fuel subsidies had put an end to such borrowing.
“Every governor in Nigeria is getting more money than we used to get. Before President Bola Tinubu removed the fuel subsidy, in Kaduna State, precisely in May 2023, we were borrowing to pay salaries but immediately after the subsidy removal, after paying salaries without borrowing, we had a surplus of money.”
However, despite the improved funding, no fewer than 32 states indicated plans to borrow N2.78tn from domestic and external institutions to fund their 2024 budget.
According to further analysis of the states budgets, the affected 24 states will spend N1.48tn on salaries in 2024, while they plan to make N914bn IGR. This means the states will need N566bn from either federal allocations or borrowing to complete the payment of salaries.
The breakdown of data shows that Bayelsa State with projected IGR of N23.9bn will need money to pay its workers N69.12bn this year. Ondo State with projected internal revenue of N33.6bn will also need extra money to fund its N56.76bn annual wage bill, while Yobe State will fund its N42.86bn wage bill from its projected IGR of N14.55bn and federal allocation or borrowing.
Sokoto is expected to pay N46.9bn salaries from its anticipated internal revenue of N37.1bn and partial funding from allocation/loan, while Taraba will obtain extra funding to pay its workers N54.47bn from its internal revenue of N27.8bn. Plateau with a projected revenue of N38.89bn must get federal government allocation o clear its wage bill of N52.25bn.
Also, the Oyo State will pay N132.67bn to workers after generating N92.79bn in its coffers. The state will need additional funding to complete this. Niger State with projected revenue of N61.87bn will need help to pay its civil servants N70.24bn while Nasarawa will pay its workers N54.45bn from its projected revenue of N43.3bn and another source.
Further analysis of the budget showed that states such as Kogi will pay its workers N65.07bn from its revenue of N30.23bn and federal allocation, while Kebbi will pay N37.3bn as salaries from its N17.8bn internal revenue and partial federal allocation. Katsina will spend N56.3bn on salaries from its N40bn internal revenue and federal allocation, while Jigawa will pay its workers N64.84bn from its revenue of N50.64bn and federal allocation.
Gombe must pay salaries worth N35.27bn from its anticipated revenue of N22.32bn and federal allocation. Ekiti will spend N2.78bn on salaries from its N1.5bn revenue and federal allocation. Ebonyi’s N28.16bn wage bill surpasses its revenue of N25.1bn, while Borno will pay its workers N50.28bn from its revenue of N27.5bn and federal allocation.
Furthermore, Benue State with revenue of N23.9bn will pay N56.9bn as salaries, while Bauchi must pay salaries worth N46.9bn from its anticipated revenue of N37.1bn and federal allocation; Adamawa will spend N52bn on salaries from its N26.9bn revenue and allocation; Akwa-Ibom will spend N127.8bn on salaries from its N60bn revenue and allocation while Delta with projected revenue of N110.3bn must seek assistance to pay its workers N164.3bn.
Also, Abia with a revenue of N32.14bn will pay N47.83bn as salaries while Cross Rivers with projected revenue of N34.7bn must seek assistance to pay its workers N67.75bn.
According to the budget data, the 11 states which have higher IGR will conveniently fund their combined 980.68bn wage will their internal revenue of N2.34trn
In different forums, financial experts have raised concerns about states’ spending on recurrent expenditure highlighting the need to embrace financial innovations.
A development economist, Aliyu Ilias, said many states had yet to fully develop themselves as industrialised and marketable to attract investors.
Ilias urged governors to develop an area of strength they could leverage to attract foreign investments.
He said, “Going forward, what they could do is to identify one area of strength. For instance, Bayelsa has oil and should be able to attract investments. I think it is about policy. They should give the policy a chance that would allow people to come and invest. They should also create an attraction and develop an economic summit that will make sure they showcase and attract investors.”
An economist and former Vice-Chancellor of the University of Uyo, Prof Akpan Ekpo, also stressed that, “states have to think of new ways of increasing their IGRs. If they continue borrowing to pay salaries, it is not good for the economy.”
He urged the states to increase their revenue by increasing service delivery, which will attract more revenue.
Also reacting, the Managing Director of the Centre for the Promotion of Private Enterprise, Muda Yusuf, said that the report indicated that a majority of states were not financially sustainable and were at risk of insolvency if there was no boost in investment.
He said, “This issue is a fiscal sustainability problem, showing that many states are not fiscally sustainable and need to work towards it; and that the states need to do a lot more to attract more investments to their states so that their level of dependence on the Federal Allocation Accounts Committee would reduce.
“Even as we speak, many of them are also in debt and by the time they pay salaries and service their debts, there is not much left to improve on infrastructure. It’s in the interest of the sustainability of the states for them to be more creative in generating more revenue and attracting more investment to their states so that they can generate more revenue.
“Secondly, we also need to address the issue of fiscal federalism because some of the states don’t have power over some resources in their domain and can’t bring investors into it. For instance, mining is controlled mainly by the federal government, you get permission from them and revenue is remitted to them. So we need to revisit the issue of restructuring to help states have more control over resources within their domain.
Continuing, the economist stated that the state governors should take a cue from the Federal Government to reduce its bloated staff and political appointees.
“Most of these states have heavy overhead and they have very bloated bureaucracy, political appointees and they are putting a lot of pressure on their resources, so they have to do some rationalisation on their staff, many of them don’t need more than 50 per cent of their workforce but for political reasons, they put all manner of characters on their payroll including the local government. They have to look at that and take a cue from the Federal Government on the Oronsaye report.”
By Gloria Ikibah
The Minister of Education, Dr. Olatunji Alausa, has called on the National Assembly to emphasise on funding for the effective take-off of already established institutions rather than creating new ones.
Dr. Alausa stated this at a public hearing organised by the House of Representatives Committee on Federal Polytechnics and Higher Technical Education, while presenting a memorandum on Thursday in Abuja.
The public hearing featured deliberations on three bills:
“A Bill for an Act to Establish the Federal College of Entrepreneurship and Skills Acquisition, Hawul Local Government Area, Borno State (HB.1797) – to provide full-time courses and training in technology, applied sciences, arts, social sciences, humanities, and management.
“A Bill to Amend Section 3(2)(b), the Second Schedule, and Section 31 of the Federal Polytechnics Act, Cap F17, Laws of the Federation of Nigeria, 2004 (HB.1413).
“A Bill to Amend the Federal Polytechnics Act, Cap F17, to review the functions of polytechnics (HB.2114)”.
The Minister speaking against the “Bill for an Act to Establish the Federal College of Entrepreneurship and Skills Acquisition, Hawul”, emphasised that the Federal Government maintains a policy of equitable distribution of federal institutions across states.
According to Alausa, no state should host more than one federal polytechnic, while every state must have at least one. Currently, all states except Sokoto and the Federal Capital Territory are covered under this arrangement.
He asserted that with limited resources, government efforts should be directed at strengthening existing institutions to deliver quality education rather than spreading resources thin by establishing new ones.
Alausa stated, “the Federal Ministry of Education has expanded avenues for establishing private tertiary institutions. States and individuals are encouraged to utilise these channels to support national educational development”.
In view of prevailing funding constraints, he recommended that deliberations on the proposed Federal College of Entrepreneurship and Skills Acquisition in Hawul, Borno State, be suspended.
He also urged the House to ensure that resources are dedicated to improving the quality of education for Nigerian students by consolidating support for already existing institutions.
With regards to the proposed amendments to the Federal Polytechnics Act, the minister raised no objections except for the provision seeking to include representatives of the National Board for Technical Education (NBTE) and the Manufacturers Association of Nigeria (MAN) on the Governing Council of Polytechnics.
“While both organisations play significant roles, their core functions do not directly align with the responsibilities of a polytechnic’s governing council. NBTE serves as a regulatory body, while MAN advocates for the interests of manufacturers”, he stated.
Earlier, the sponsor of the bill, Rep. Usman Balami (PDP–Borno), defended the proposal, citing insecurity and rising unemployment in Borno as pressing reasons for establishing the institution.
He described the proposed college as a strategic response to the growing number of unemployed youth and a means to equip them with skills necessary for self-reliance and economic empowerment.
“This institution will provide diverse training programmes tailored for today’s dynamic job market. It will bridge the gap between theory and practice, producing graduates ready to meet workforce demands”, Balami said.
According to the Borno lawmaker, the college will foster innovation, encourage entrepreneurship, and stimulate economic growth in the region by nurturing local talent and promoting a culture of self-employment.
Earlier in his remarks, the Committee Chairman, Rep. Fuad Laguda (APC–Lagos), noted a general consensus on the importance of skills acquisition in tackling unemployment.
He encouraged stakeholders to make robust contributions, assuring that the committee would carefully consider all submissions in its report.
“With the passage of these bills, Nigerians will have greater access to knowledge and skills in the arts, sciences, technology, humanities, and vocational and technical education,” Laguda said.
He also commended the leadership of the House for their support and the trust reposed in the committee to drive meaningful legislative outcomes.
By Gloria Ikibah
The House of Representatives has resolved to probe the technical fault that resulted in the widespread failure recorded in the 2025 Unified Tertiary Matriculation Examination (UTME).
This resolution was sequel to the adoption of a motion of urgent public importance by Rep. Adewale Adebayo, from Osun state on Thursday at plenary.
Naijablitznews.com recalled that the Joint Admissions and Matriculation Board (JAMB) had released the results of the 2025 UTME on May 9, with a significant number of candidates posting poor scores.
Reports further revealed that over 78 percent of candidates scored below 200 marks out of the total 400 obtainable.
Following a prompt internal review, JAMB identified a major technical fault behind the results.
The Registrar of JAMB, Prof. Ishaq Oloyede, at a press conference held on Wednesday in Abuja, stated that 379,997 candidates were affected due to discrepancies linked to server issues.
According to Prof. Oloyede, these was due to faulty software updates by one of the technical service providers handling JAMB’s operations in the Lagos and South-East zones.
He explained that the glitch, which occurred during the first three days of the examination, prevented the proper uploading of candidates’ answers and the error remained undetected before the results were made public.
He announced that the affected candidates will be allowed to retake the examination between May 16 and May 19, 2025.
Presenting the motion on the floor of the House, Rep. Adebayo lamented the hardships faced by many Nigerians, including long travels to exam centres, only to be met with such setbacks.
Contributing to the debate, Rep. Sada Soli from Katsina praised the JAMB Registrar for owning up to the error and offering an apology to the public, and described Oloyede as a man of integrity who has also improved the board’s finances since assuming office.
However, Speaker Tajudeen Abbas stated that whether the registrar deserves commendation is a matter for the investigative committee to determine.
The House also urged the federal government to establish Computer-Based Test (CBT) centres in all local government areas across the country.
Lawmakers also urged JAMB to release the results of candidates who are below the age of 16.
The House unanimously adopted the motion through a voice vote.
. Conviction will send strong warning to int’l drug cartel, local collaborators, says Marwa, commends NDLEA officers for diligent investigation and prosecution
After over three years of diligent prosecution by the National Drug Law Enforcement Agency (NDLEA), a Federal High Court in Lagos presided over by Justice Daniel Osiagor has convicted 10 Thai sailors and their vessel named MV Chayanee Naree for trafficking 32.9 kilograms of cocaine from Brazil into Nigeria through the Apapa seaport, Lagos.
The convicted sailors who are all nationals of Thailand include: Krilerk Tanakhan; Boonlert Hansoongnern; Jakkarin Booncharoen; Thammarong Put-tlek; Worrapat Paopinta; Marut Kantaprom; Werapat Somboonying; Urkit Amsri; Panudet Jaisuk and Amrat Thawom.
They were first arraigned before the court along with nine Nigerian suspects by NDLEA in February 2022 on offences bordering on conspiracy and unlawful transportation of the illicit drug consignment from Brazil to Nigeria. The vessel, the convicted sailors and the nine Nigerians were arrested on 13th October 2021, at the Apapa port in Lagos. The Nigerian suspects are: Samuel Messiah; Ishaya Maisamari; Ilesanmi Ayo Abbey; Osabeye Stephen; Gbenga Ogunfadeke; Kayode Buletiri; Rilwan Omotosho Liasu; Saidi Sule Alani and Jamiu Adewale Yusuf.
They were all subsequently charged to court over the illegal acts which NDLEA prosecutors argued contravened sections 11(a), 11 (b), and 14 (b) of the National Drug Law Enforcement Agency Act Cap N30 Laws of the Federation of Nigeria, 2004, and punishable under the same Act.
The convicted sailors had initially made a no-case submission which was dismissed following submissions by the prosecution that a prima facie case had been established against the vessel and its crew members. As a result, the trial judge ordered the convicted Thai sailors and others to open their defence on the charges against them.
Following the court ruling, the convicted sailors opted for a plea bargain agreement with the NDLEA and as a result, Justice Osiagor delivered his ruling at the resumed hearing of the matter on Thursday 15th May 2025.
Among other penalties, the judge convicted the Vessel MV Chayanee Naree for unlawful transportation of 32.9kg of cocaine into Nigeria and
ordered to pay a fine of $4 million or its Naira equivalent.
The 2nd – 11th defendants were convicted under section 25 of the NDLEA Act for permitting the use of the vessel for the unlawful transportation of 32.9kg of cocaine, while the 2nd, 3rd and 4th defendants were ordered to pay N100,000.00 each as punishment for the offence and in addition restitution in the sum of $50,000 USD each or its equivalent in Naira to the Federal Government of Nigeria. The 5th – 11th defendants are to pay N100,000.00 each and restitution in the sum of $30,000.00, bringing the total amount payable to Four Million Three Hundred and Sixty Thousand US Dollars ($4,360,000.00).
Justice Osiagor thereafter adjourned the trial of the nine Nigerian suspects to June 25.
While the prosecution was led by the Agency’s Director of Prosecution and Legal Services, DCGN Theresa Asuquo, supported by A. Adebayo and Paul Awogbuyi, the defence team was led by the trio of Messrs Babajide Koku, Femi Atoyebi and Tunde Adejuyigbe, all Senior Advocates of Nigeria (SAN).
In his reaction, Chairman/Chief Executive of NDLEA, Brig Gen Mohamed Buba Marwa (Rtd) said the court ruling was a strong message to the international drug cartel and their local collaborators that Nigeria will never be a safe hub for illicit drug trafficking. He commended the NDLEA prosecution team and officers of the Apapa Strategic Command involved in the arrest, seizure and investigation of the shipment for their diligence and resilience in following the case to a logical conclusion. He charged them not to relent in pursuing the other part of the case still pending.
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