The Labour Party (LP) has said the Independent National Electoral Commission (INEC) lacks the power to deregister the party.

The party’s National Publicity Secretary, Obiora Ifoh, said this in a statement yesterday in Abuja.

The party described comments allegedly attributed to the caretaker committee chairman of the party, Nenadi Usman, that its intervention saved the party from being deregistered by INEC as “ludicrous, unattainable, unsubstantiated and a pack of lies”.

It reads: “The attention of the leadership of the Labour Party has been drawn to a statement issued by Senator Nenadi Usman, a card-carrying member of the Peoples Democratic Party (PDP), wherein she claimed that the quick intervention of some leaders of the party at the September 4, 2024 stakeholders’ meeting in Umuahia (Abia State) saved the party from being deregistered by the Independent National Electoral Commission (INEC).

“The Labour Party leadership wishes to refute that statement as ludicrous, unattainable, unsubstantiated, and a pack of lies. We wish to state emphatically that the Labour Party is in a good shape at the moment, having fully abided by the laws of the land and therefore cannot be deregistered by INEC.

“These leaders have also mischievously leveraged INEC’s misinformed and erroneous disposition that the tenure of the party’s current executives has expired. It is paradoxical that some of these leaders, who were victims of INEC’s mismanagement of the 2023 general election, are now the ones quoting INEC, in order to victimise the leadership of the Labour Party.

“As we have maintained earlier, the September 4 stakeholders’ meeting held in Umuahia is unconstitutional and illegal as the party’s constitution clearly states all the organs of the party, of which Stakeholder is not one of them. The stakeholder group which produced Senator Usman as its leader has no foundation whatsoever, and therefore, its existence is delusional and can never be recognised by INEC or any law of the land.

“Senator Nenadi’s claim that the Stakeholders saved the party from being deregistered by the INEC is equally preposterous.This us because the existence of the Labour Party is not under any threat.

“Perhaps, Nenadi Usman is not aware that Appeal Courts, both in Edo State and the Federal Capital Territory (FCT), have affirmed Julius Abure as the rightful National Chairman of the party. She is probably unaware that a Federal High Court in Abuja, presided over by Justice J. K. Omotosho, had also declared that the national convention of the party held in Nnewi on the March 26, 2024 is valid and was conducted in line with the requirement of both the 2022 Electoral Act and Labour Party constitution.

“We wish to remind Senator Usman that even the Supreme Court in several judgments had ruled that Issues regarding delegates at a national convention or how the convention is planned and executed by a political party are outside the jurisdiction of any court of the land being internal affairs of a party

Troops have rescued 20 kidnap victims in Birnin Gwari local government area of Kaduna State just as it neutralised four bandits in two operations in Birnin Gwari and Giwa local government areas of the State.

The Kaduna State Government, which disclosed this citing a security report, said troops of Operation Forest Sanity had embarked on special clearance operations in the general area of Alawa in Birnin Gwari LGA.

Overseeing Commissioner, Ministry of Internal Security and Home Affairs, Samuel Aruwan, in a statement on Tuesday, said the troops set up as a blocking force, sighted bandits movement around Kwaga, and after a brief pursuit, neutralized two of them.

The statement said: “The following items were recovered: Two AK-47 rifles, Three magazines, Three motorcycles, One Baofeng Radio. In the second report, troops of Sector 6 Operation Whirl Punch conducted fighting patrols around Nakwakina village, Giwa LGA. Following credible intelligence, the troops laid ambush along a likely terrorists’ withdrawal route.”

“The terrorists were eventually sighted and engaged, resulting in two neutralized as others escaped with bullet wounds. The troops combed the area and recovered two motorcycles, one cutlass and one mobile phone,” it added.

The statement explained that in another mission, troops of Sector 3, Operation Whirl Punch deployed along Kwaga-Polewire Road, Birnin Gwari LGA, responded to a distress call and intercepted bandits who had kidnapped locals near Polewire village. “The bandits fled from the scene on sighting the troops, who promptly rescued the 20 kidnapped victims and reunited them with their families.”

Reacting to the development, Kaduna State governor, Uba Sani, commended the troops for the successful operations.

A delegation of the House of Representatives has visited Maiduguri, the Borno State capital that has been ravaged by devastating flood.

Led by the Chairman of the Northern Regional Caucus, Alhassan Doguwa, the lawmakers sympathised and commiserated with the government and people of the state over the unfortunate incident.

The delegation met with the state governor, Babagana Zulum, where Doguwa announced the intervention of the House on behalf of the Speaker, Tajudeen Abbas.

Addressing reporters at the Government House in Maiduguri, Doguwa commended President Bola Tinubu for his prompt and effective response to the plight of the people of Borno State.

He expressed appreciation to the President for pledging the Federal Government’s support to the state government and the affected victims.

“We are here on behalf of the Speaker, Rt. Hon. Abbas Tajudeen, PhD, and all members of the House to express our heartfelt condolences to the Government and people of Borno State,” he said.

“This donation of ₦100 million is a testament to our commitment to standing with Borno during this difficult time. We remain dedicated to supporting the state as it recovers from this disaster.

“We pledge the National Assembly’s readiness to liaise with the Federal Government to develop a legislative framework or any possible budgetary intervention to assist state governments in addressing the impacts of flood disasters in the country.”

Receiving the delegation, the governor commended the House of Representatives for their swift response to the crisis.

“On behalf of the people and Government of Borno State, I sincerely appreciate the Speaker, the House leadership, and all members for their quick and timely intervention,” he said.

“This prompt action will greatly assist in alleviating the suffering of our people and helping us manage the aftermath of this unfortunate disaster. The responsiveness of the House of Representatives in moments like this is truly reassuring.”

The candidate of the Labour Party (LP) in the 2023 presidential election, Peter Obi on Tuesday led the leadership of the party and the Obidient Movement to Maiduguri, the Borno State capital to condole with the state over the flood disaster that befell the state recently.

Obi who visited the state governor, Babagana Zulum and Shehu of Borno, Abubakar Ibn Umar Garba Al Amin El-Kanemi, was accompanied by his 2023 running mate, Dr Datti Baba-Ahmed, and Chairman of the party’s National Caretaker Committee Senator, Nenadi Usman.

The former Anambra State governor donated the sum of N50 million to the emergency relief fund of the state Government.

“We will continue to stand with the people of Borno, providing aid and resources to help them rebuild and recover from this tragedy,” he said in a statement by his media aide, Ibrahim Umar.

He told the people of Borno that as they navigate the challenging time, “We want them to know they are not alone.

“We are dedicated to helping alleviate the suffering and hardship caused by the floods, which have submerged over half of Maiduguri and displaced thousands of residents.

“Our thoughts and prayers are with the affected families, and we will do everything in our power to support them.”

Three major oil marketers are expecting vessels of imported Premium Motor Spirit, popularly called petrol, this week barring any unforeseen circumstance, it was gathered on Tuesday.

Dealers said about 141 million litres of PMS are being conveyed to Nigeria by the vessels following the full deregulation of the downstream oil sector by the Federal Government.

They also noted that the recent hike in the pump prices of petrol produced by the Dangote Petroleum Refinery and released by the Nigerian National Petroleum Company Limited on Monday had allowed room for PMS imports.

This came as the Nigerian Midstream and Downstream Petroleum Regulatory Authority declared that all imported PMS would be subjected to at least three major tests by the agency before being allowed for sale across the country.

On Monday, NNPC announced that it would sell the petrol lifted from the Dangote refinery at a price above N1,000/litre in the far north.

Its spokesperson, Olufemi Soneye, disclosed in a statement titled, ‘NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery Based on September 2024 Pricing’.

Soneye explained that the price may go for as high as N1,019/litre in Borno State and N999.22 in Abuja, Sokoto, Kano, and others.

In Oyo, Rivers, and other areas in the South, it will be N960/litre. The lowest price, according to an infographic released by the NNPC, is N950 in Lagos and its environs.

Reacting to this on Tuesday, a major marketer confirmed that the deregulation of the downstream sector had fully set in, stressing that three dealers are expecting their products (PMS) this week.

The marketer, who spoke to our correspondent in confidence due to lack of authorisation to speak on the matter, stated that each vessel would bring in about 35,000 metric tonnes of PMS.

This means the three dealers are expecting about 105,000 metric tonnes of PMS this week, all things being equal.

Going by the conversion rate of 1,341 litres to one metric tonne, it, therefore, implies that the marketers are bringing in about 141 million litres of petrol.

“Most marketers often import three parcels for this kind of transaction and the lowest parcel is about 35,000 metric tonnes of PMS. Now, because of how the business is run, you see marketers bringing in between two and three parcels.

“This week, we expect about three marketers to bring in products. However, some of these imports are not cast in stone, in the sense that the influence of many regulatory authorities is still there. So it is not that you will just go and bring in products and you then start to sell them.

“The regulators, such as the NMDPRA, have to look at the quality, flash points and so many other things that should be taken into consideration before the product comes in. And when it lands, they will take samples and check them in their labs,” the marketer stated.

On whether the three parcels of each of the marketers would land this week, the dealer replied, “All of them are not going to bring in the three parcels at the same time. They bring in a parcel first and later, say in one week time or so, another parcel comes in. All these imports have storage implications.

“It is not something you do in a day. You can’t bring in one vessel today (Tuesday) and you bring in another one on Saturday. No, it is not done like that. This is not the importation of 20,000 or 30,000 litres of PMS.”

When contacted, the spokesperson of the NMDPRA, George Ene-Ita, said marketers with approved import licenses were free to import PMS, but stressed that the products must be subjected to three major tests by the agency.

“The products must be subjected to our testing protocols at the ports. The products must conform to stipulated standards before we give them the authorisation to offload to their terminals.

“Also, before the smaller vessels bring it further inland to Nigeria our people will fly to the place to see the product and carryout some tests to ensure the right specification is upheld.

“Tests are also done at the products’ origins. And when the products come in, before they are released to the market, further tests would be conducted to ensure that they meet the specifications,” he stated.

The presidency says President Bola Tinubu did not ask Yemi Cardoso, governor of the Central Bank of Nigeria (CBN), to resign.

According to a report on Tuesday, the president reportedly asked Cardoso to resign from his position owing to his inability to stop the poor performance of the economy, most especially, the free fall of the naira.

The report also alleged that Tinubu instructed Cardoso to step down before his departure to China, despite alleged efforts by prominent Yoruba leaders to retain him in the role.

“Cardoso, who reportedly secured the nomination for the plum job through the Yoruba Elders, allegedly lacks the knack to turn around the troubled institution and the poor economy he inherited,” the report said.

“Cardoso’s undoing, according to insiders, is his inability to live up to the promise he made to President Tinubu in January to salvage the Naira and return it to between N700 and N900 to $1 before May 29, 2024, and also, save the economy from the ruins it currently lays.”

Addressing the claim via his X handle, Bayo Onanuga, special adviser to the president on information and strategy, called the report false.

“It’s all lies. President Tinubu has not asked Yemi Cardoso to resign,” Onanuga said.

Cardoso was appointed by Tinubu on September 22, 2023.

Within the first year of Cardoso’s tenure, the naira has depreciated by 124.39 percent in the official window and depreciated by 66.83 percent in the parallel market.

When Cardoso assumed office, the naira was N738/$ in the official window however, almost a year later, the naira has depreciated to N1,656 per dollar in the official market as of Tuesday.

Also, in the parallel market, the naira has depreciated to N1,660/$ as of Tuesday, from the N995/$ reported when he began his tenure.

The Federal Government earned approximately $1.2bn in telecom license fees from major operators, including MTN, Globacom, Econet (now Airtel), and Etisalat (now 9mobile), during the inception of mobile technology in Nigeria.

These license fees played a vital role in establishing the telecom industry in 2000, a sector crucial to Nigeria’s economy.

Former President Olusegun Obasanjo revealed this at the book launch and exaugural lecture of former Editor of The PUNCH, Dayo Oketola, in Lagos on Tuesday.

He revealed that his administration rejected attempts to sell telecom licenses for a mere $3m, instead ensuring they were sold at their true value of $280m each to MTN, Glo, and Etisalat.

Notably, Etisalat, the last entrant into the telecom sector, paid a substantial $450m for its license. This strategic move generated a total of $1.2bn to the Federal Government through the Nigerian Communications Commission.

“When the first three mobile telecom companies came in, they were offered licenses. The cost of one of these licenses was $280m, but soon, the same license was going to be offered for just $3m by some individuals in the previous government who wanted to give out these licenses to their friends for just $3m,” Obasanjo said.

He said while these investments have driven significant progress, creating the right conditions remains essential for attracting future investments and sustaining sector growth. 

“There are still opportunities today for Nigeria to attract investments, but the right conditions need to be created for that money to come in again,” he stated.

MTN, a South African firm, began operations in Nigeria in August 2001 and quickly became a market leader. Globacom entered the market in 2003, introducing a pioneering per-second billing model that compelled MTN and Econet to follow suit.

Econet Wireless Nigeria, launched in 2000, initiated commercial GSM services on August 5, 2001. In 2007, Emerging Markets Telecommunications Service, trading as Etisalat, joined the Nigerian telecom market.

Speaking further, he acknowledged that the competition among operators (MTN, Econet, Glo) significantly shaped the sector.

“We achieved competition. The three of them were competing. And of course, the one who had the upper hand in terms of spread, I think, was MTN, followed by Glo and then there was Econet. Econet made the heart quarrel among themselves a bit, but eventually, they sorted themselves out. Well, when they came, they came last,” the ex-president stated.

Before the advent of mobile telephony in Nigeria around 2000, landlines were the primary means of communication. During this period, landlines were limited and often considered a luxury, accessible mainly to the wealthy.

The former head of state recounted how Nigerians faced considerable challenges with limited infrastructure, securing fewer than 500,000 phone lines despite extensive investments.

“The story of communication telecommunication, particularly mobile communication telecommunication, was a very interesting one, because before mobile telecommunication, we’d done a lot of things.

“We spent a lot of money. We have had companies we have invited from America, from France, even from Britain, and we did not get more than 500,000 lines with all that we have done, and people have to queue at the telephone,” Obasanjo stated.

The Nigeria Hydrological Services Agency (NIHSA) has issued a flood alert to Nigerians as the management of the Lagdo Dam in Cameroon is set to begin regulated water releases into the country.

In a statement on Tuesday, Umar Mohammed, NIHSA’s director-general, said the dam’s regulated water releases will commence on September 17.

Mohammed said the dam managers intend to release the water gradually so as not to exceed the transfer capacity of River Benue and cause major flooding in Nigeria.

He said the water will be released at an initial rate of 100 cubic metres per second (m3/s) — 8.64 million cubic metres per day, and gradually increased to 1000 m¾s in the next seven days.

“Notwithstanding, it is highly imperative for all states that are contiguous to the Benue River system, namely —Adamawa, Taraba, Benue, Nasarawa, Kogi, Edo, Delta, Anambra, Bayelsa, Cross Rivers, and Rivers; the government at all levels (Federal, State, and LGAs) to step up vigilance and deploy adequate preparedness measures to reduce possible impacts of flooding that may occur as a result of increased flow levels of our major rivers at this period,” the statement reads.

Mohammed added that the agency would ensure that it closely monitors the flow situation to forestall further flood disasters.

He assured Nigerians that there is no cause for alarm, noting that the flow levels along the Benue River are still within the warning levels.

On September 10, residents of Maiduguri were displaced from their homes following a devastating flood caused by the collapse of Alau Dam, which has been at full capacity for the past week.

The National Emergency Management Agency (NEMA) said more than 30 persons lost their lives and over 400,000 displaced due to the floods.

The Nigeria Police Force (NPF) says its operatives have arrested Taimako Mato, a suspected weapon handling instructor for the Boko Haram terrorist group, and four others for alleged gunrunning.

The four other suspects are John Danladi, Mohammed Munkail, Manasseh William, and Muhammadu Haddi.

In a statement on Tuesday, Muyiwa Adejobi, the force spokesperson, said the suspects are members of a gunrunning syndicate operating in Bauchi and Plateau states.

“The suspects, identified as Taimako Mato ‘m’, John Danladi ‘m’, Mohammed Munkail ‘m’, Manasseh William ‘m’ and Muhammadu Haddi ‘m’, were arrested with 1 PKT machine gun, 40 rounds of 37.2mm and 95 rounds of 62mm cartridge ammunition,” the statement reads.

“The leader of the syndicate, Taimako Mato, was a weapon handling instructor at a Boko Haram camp who procures these prohibited weapons and passes them on to the other members of the syndicate to sell to various buyers.”

Adejobi said police have arrested 295 suspected armed robbers, 186 kidnappers, 271 murder suspects, and 71 suspects for unlawful possession of firearms in the last one month.

“Also arrested 199 suspects for sexual-related offences, 143 suspects for cultism, and 1,575 suspects arrested for other various crimes,” the force spokesperson said.

“The force also recovered 185 firearms and a total number of 4,087 rounds of ammunition of various calibres, 111 vehicles were recovered, and 129 kidnapped victims were rescued.”

The force spokesperson said the police would not relent in ensuring that crimes are reduced to the barest minimum in the country.

Debt servicing costs incurred by 29 state governments consumed 80.7 per cent of their Internally Generated Revenue during the first six months of 2024, highlighting the significant financial burden the sub-nationals currently face, The PUNCH reports.

The dire situation also forced the governors to borrow a total sum of N446.29 billion within the same period despite a 40 per cent increase in its statutory allocation from the Federation Account.

The latest information is according to an analysis of data obtained by our correspondent using the budget implementation reports from each state’s website and Open Nigerian States. This BudgIT-backed website serves as a repository of government budget data.

The performance report is prepared quarterly and issued within four weeks from the end of each quarter.

This heavy burden underscores a critical issue in fiscal management, as the vast majority of the revenue that states could otherwise allocate to essential public services and development projects is being diverted to meet debt obligations.

It also reveals the severe constraints faced by state governments in managing their debt burdens inherited from previous administrations and addressing the needs of their residents.

Nigerians had hoped that with an increased statutory allocation of 40 per cent from the central government, state governors should have more than enough to fulfill their statutory obligations. 

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 revenue increase should have reduced state governments’ appetite for more borrowing.

Instead, the sub nationals are spending a large chunk on repaying loans and taking more loans.

Recall that the PUNCH had reported that most of the Federal Accounts Allocation Committee funds for Osun, Ondo, Kaduna, and Cross Rivers states will be used in servicing debts this year.

This is because these states currently have a deficit of N10.94bn, N27.72bn, N15.83bn, N10.02bn respectively following debt servicing deductions by FAAC.

With such a large portion of revenue being used to service debt, it becomes increasingly challenging for states to achieve long-term economic stability and improve the quality of life for their residents.

Earlier this year, Kaduna State governor, Uba Sani had complained vehemently about the huge debt burden inherited from previous administrations, lamenting that it had stopped the prompt payment of salaries and more borrowings in the last nine months of his government.

The governor who made this known while addressing a Town Hall Meeting at the late Umaru Musa Yar’Adua Hall, stated that his administration inherited a total of $587m, N85bn, and 115 contract liabilities.

He said, “Despite the huge debt burden of $587m, N85bn, and 115 contractual liabilities sadly inherited from the previous administration, we remain resolute in steering Kaduna State towards progress and sustainable development. We have conducted a thorough assessment of our situation and are sharpening our focus accordingly.”

The PUNCH had reported that state governors faced an uphill task of stimulating the economies of their respective states after they inherited at least N2.1tn in domestic debts and $1.9bn in external debts from their predecessors.

This was as 22 states spent a total sum of N251.79bn to service debt borrowed by past administrations within nine months of assuming office (July 2023 and March 2024).

The situation also forced the state governments of Ekiti, Cross River, and Ogun to propose a suspension of their foreign debt repayments worth $501m due to severe foreign exchange volatility.

The request, though rejected by FAAC, was part of their efforts to mitigate the heightened debt service burdens, which state officials claimed has significantly hampered their ability to service existing debts.

Experts say the high debt servicing costs leave little room for investment in infrastructure, education, healthcare, and other key areas vital for economic growth and social welfare.

Meanwhile, an analysis of the budget implementation report showed that Akwa-Ibom, Borno, Cross Rivers, Edo, Katsina, and Niger spent between 60 and 80 per cent of their internally generated revenue to repay owed debts.

Also, states as Abia, Anambra, Bayelsa, Delta, Ebonyi, Ekiti, Jigawa, Enugu, Kebbi, Kwara, Ondo, Osun Zamfara, and Oyo disbursed between 13 and 58 per cent of their revenue for debt servicing

While the amount spent on debt servicing for nine states including Adamawa, Bauchi, Gombe, Imo, Kano, Kogi, Plateau, Taraba, and Yobe exceeded their revenue within the period.

Data for Benue, Nasarawa, Ogun, Rivers, Sokoto, and Kaduna states were not available when this report was filed. Only Lagos State recorded an impressive IGR of N603.71bn while it paid N201.49bn as debt charges.

A state-by-state breakdown indicated that Abia State under the leadership of Governor Alex Otti spent N4.83bn on servicing its debt, while it earned N15.6bn as revenue, representing a ratio of 31 per cent.

Adamawa spent N14.48bn on its debt but earned N5.75bn, recording a deficit of minus 252 per cent, Akwa-Ibom state spent N20.78bn on its servicing but got N31.74bn IGR indicating 65.4 per cent ratio.

Anambra serviced its debt with N4.8bn but got N18.61bn IGR at a ratio of 25.9 per cent. Bauchi got a debt service ratio of minus 42.9 per cent after it earned N3.92bn but spent N16.8bn on servicing. Bayelsa spent N17.84bn on servicing but earned N46.98bn as revenue, indicating a servicing ratio of 38 per cent.

Further analysis of the report indicated Borno spent N7.25bn on debt charges and earned N12.04bn, representing a ratio of 60.2 per cent, Cross Rivers had a debt service ratio of 60.7 per cent after it spent N12.05bn on loans and got N19.86bn IGR.

Delta State’s burden was 58.2 per cent after it spent N39.08bn on reducing its debt and earned N67.05bn within the review period. Ebonyi had a 48.6 per cent debt ratio due to its N5.05bn spending on debt and N10.39bn revenue collection. Edo State under the leadership of Governor Godwin Obaseki spent N22.66bn on servicing and collected N34.44bn as revenue, indicating a debt ratio of 65.8 per cent.

Ekiti had a debt service ratio of 47.9 per cent after it spent N7.85bn on loans and got N16.39bn IGR. Enugu spent N3.49bn on its debt but earned N16.39bn, indicating a 20.6 per cent ratio. Gombe spent N13.07bn on its debt but earned N9.6bn, recording a deficit of minus 136 per cent. Imo State also recorded a deficit of minus 1.10 per cent after it spent N10.68bn on servicing but got N9.69bn as revenue.

Also, Jigawa State spent N1.89bn on servicing while it earned N4.55bn as revenue, representing a ratio of 41.6 per cent. Kano recorded a deficit of minus 244.4 per cent due to N60.02bn expense on debt but collected N24.57bn as revenue.

Katsina had a 77.4 per cent debt ratio due to its N8.14bn spending on debt and N10.51bn revenue collection. Kebbi spent N1.99bn on its loan servicing while it earned N4.79bn as revenue, representing a ratio of 41.6 per cent. Kwara State recorded the lowest debt-to-revenue ratio of 13.9 per cent, and spent N4.87bn on debt charges but collected N35.1bn as revenue.

Kogi spent N12.79bn on servicing and collected N12.75bn as revenue, indicating a debt ratio of minus 1.06 per cent. Niger State recorded a debt ratio of 80.7 per cent due to debt charges of N11.88bn and revenue collection of N14.73bn.

Ondo State recorded a debt to revenue of 52.4 per cent, Osun (43.2 per cent), Oyo (57.2 per cent). Plateau State recorded the highest debt-to-revenue ratio of minus 550.76 per cent, spending N61.23bn on debt charges but collected N11.11bn as revenue. Taraba and Yobe states recorded a deficit of minus 283.5 per cent and 1.16 per cent respectively.

Experts have, however, attributed the significant increase in debt servicing cost partly to the devaluation of the naira, which drove up the cost of servicing foreign debt obligations as the nation grapples with the forex liquidity crisis and exchange rate volatility.

The Director/CEO of the Centre for Promotion of Private Enterprise, Dr Muda Yusuf, speaking in an exclusive interview on Sunday, stated that the significant debt servicing cost was adversely impacted by the depreciation of the naira, which caused a decline in its value relative to other currencies.

He noted that the enormous debt burden inherited by the current administration is also straining state finances and impacting its ability to meet major obligations.

Mr Muda said, “The point is that these states inherited a huge burden of debts. The figure mentioned may sound outrageous but is not much when calculated in dollar terms. Multilateral debts are also tied to infrastructural projects and developmental purposes. Borrowing is not in itself bad if it is used for developmental purposes but the burden of debt must not suffocate the state finances and affect its ability to fulfill major obligations.

“Also, those debts are foreign and once the naira depreciates, it affects the level of debt. As they struggle to service it, the level is still going up because of the exchange rate depreciation. With the depreciation of the currency, the burden of servicing those loans has become extremely very heavy. The exchange rate factor is a major challenge in the debt burden of many states.”

Government spending has come under increased scrutiny in recent times, particularly in light of the country’s worsening economic challenges.

At different fora, financial experts have also raised concerns about states’ spending on recurrent expenditure, highlighting the need to embrace financial innovations. 

A professor of Economics at Babcock University, Segun Ajibola, stated that the enduring problem of high governance expenses had persisted at the state level, with inadequate oversight and accountability resulting in minimal economic benefits for grassroots citizens.

Ajibola, a former president of the Chartered Institute of Bankers, lamented that state assemblies had also abandoned their oversight duties, leaving the state governors to operate with no iota of transparency and accountability.

He said, “The first issue is the perennial complaint about the high cost of governance in Nigeria and at all levels. When you look at these issues, attention is often concentrated on the Federal Government, so the searchlight is always more on the central government. Most often, nobody cares about what is happening in the states and local government, and that is where the problem is.

“There are so many institutional frameworks in place to look at what is happening at the federal level but who cares about the states? The cost of governance in relative terms is even much higher in states than the federal and that is why you hardly feel the impact of governance in most states.

“Only a few states can boost a significant presence in the lives of their people in our states. The state assemblies are expected to conduct oversight functions on the activities of the executives in their respective states, but in reality, how many states are doing that, leaving the executives to be all in all incurring high costs.”

Meanwhile, 20 state governments borrowed a total sum of N446.29bn collectively to address their budget deficits and to cover various expenses, including essential services, infrastructure projects, and operational costs.

Our correspondent’s findings also revealed that the majority of these loans were sourced from multilateral and international creditors, contrary to the Federal Government’s emphasis on borrowing from the domestic market. 

Further analysis showed that Cross Rivers State was among the states that got the highest loan of N121.22bn between January and June. It was followed by Oyo State with N55.36bn loans. Third on the list is Kogi State with loans worth N41.22bn.

Katsina State also obtained loans worth N34.09bn from creditors within the quarter.

Other states including Niger got N34.03bn, Gombe (N32.38bn), Ondo (N20,82bn), Borno (N20.7bn), Bauchi (N19.28bn), Taraba (N20.23bn), Yobe (N10.17bn), Kwara (N10.06bn), Ekiti (N7.94bn), Ebonyi (N6.43bn), Kano (N6.15bn), Abia (N3.37bn), Enugu (N1.39bn).

The states with the least borrowing include Edo (N633.73m), Osun (N250m), and Plateau state with N530.86m loan.