Photo Credit: The Punch
2025-12-28 09:00:00
Figures cited by Saturday PUNCH show states and local government councils reduced outstanding bank borrowings by about ₦547.5bn over one year, amid stronger statutory inflows.
The report links the drop in bank claims to higher Federation Account distributions and the higher cost of borrowing under a tighter interest‑rate environment.
TheStar.ng reported that “States and Local Government councils cut their outstanding bank loans by about N547.5bn in one year,” while TheConclaveNg cited CBN bulletin data that claims fell from “N2.68tn… to N2.13tn” by June 2025.
Echotitbits take: Lower bank debt is good—but what replaces it matters. If states swap bank loans for short‑term contractor arrears or opaque “capital receipts,” the fiscal stress simply moves. Watch state debt transparency, DMO/CBN data and wage/contract arrears.
Source: The Punch — December 27, 2025 (https://punchng.com/states-lgs-repay-n547-5bn-bank-debts/)
The Punch 2025-12-27
