Photo Credit: The Punch
2025-12-27 06:00:00
In a review published by Punch, Nigerian states and local governments reportedly reduced bank borrowing by about ₦547.5bn over the past year as federation revenue inflows improved.
The story suggests higher allocations gave some subnational governments room to refinance or repay costly short‑term facilities, easing pressure on monthly deductions and debt‑service burdens.
However, analysts note that debt reduction is only durable if states also strengthen internally generated revenue and curb recurrent leakages, especially as oil‑linked inflows remain volatile.
Echotitbits take:
This is a rare “good-news” fiscal signal, but it can reverse fast if FAAC cools or spending balloons. Watch the next quarter’s allocations, states’ IGR trends, and whether repayment coincides with better capital spending rather than fresh borrowing.
Source: The Punch — December 27, 2025 (https://punchng.com/states-lgs-repay-n547-5bn-bank-debts/)
The Punch December 27, 2025
