Only four states can survive without loans in Nigeria

Civil society organisation, BudgIT, in a new report has said only four states in Nigeria can pay salaries without borrowing.

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The report titled State of State 2017, was launched on released to the public on Friday.

The report said, “Important is states’ ability to meet their recurrent expenditure obligation with all revenue source — a test of prudent fiscal management. Kano, Katsina, Rivers and Lagos top that portion of the index.

“As about 83% of states’ revenues are collected by the federal government, what accrues to states’ coffers is the balance left after obligations to debtholders are deducted from each state’s share of revenue.

“The effect of huge debt supported by ISPOs is already eating deep into the account of Lagos, Cross River and Osun states. Osun’s net allocation is even in the negative terrain, which invariably puts more pressure on future revenue.

“Also, the index looks at the ability of states to sustainably manage their debt profiles. The index tries to see the extent to which today’s revenue can service outstanding debts. Anambra and Yobe top the index.