Workers knock governors over N2.2tn Loan

Workers knock governors over N2.2tn Loan

State government workers and pensioners’ unions have criticised State governors for borrowing N2.2bn amidst revenue challenges.

A quarterly statistical bulletin recently published by the Central Bank of Nigeria revealed that states and LGAs owed banks about N2.21tn as of March 2023.

Also, according to data from the Debt Management Office showed that the 36 states and the Federal Capital Territory owed about N5.48tn as of March 31, 2023.

This indicates an increase of 13.22 per cent from N4.84tn domestic debt as of March 31, 2022.

The National Union of Local Government Employees and state chapters of the National Union of Pensioners said the bank’s loans did not translate to better infrastructure and improved welfare for workers and pensioners.

The groups stated that the rising borrowing by governments had only worsened the finances of the states.

Lagos was the top debtor with about N812.38bn as of March 31, 2023.

It was followed by Ogun (N293.2bn), Rivers (N255.51bn), Akwa Ibom (N206.64bn), and Imo (N202.55bn).  Jigawa had the least domestic debt of N43.59bn as of March 31, 2023.

It was followed by Kebbi (N60.94bn), Katsina (N62.37bn), Nasarawa (N71.45bn), and Ondo (N75.51bn).

Reacting, the Chairman of the Association of Senior Civil Servants of Nigeria, Enugu State Chapter, Mr Igbokwe Chukwuma, expressed concern that such fund may be diverted.

He said, “Except the states are still at the preparations stage to use such funds to pay salary arrears but we are not aware of any arrangement or pronouncements to that effect.”

In the same vein, the Head of Information of the National Union of Pensioners, Bunmi Ogunkolade, described the development as daylight robbery.

“Most of these states have not paid pension gratuities since 2010. So if someone is borrowing and is not disclosing what it is for, then that is daylight robbery. They often claim they are funding infrastructures.”