Nigerian States Borrow ₦458 Billion Despite Increased FAAC Allocations

Despite a rise in FAAC allocations, 20 Nigerian states borrowed a total of ₦458 billion in six months to service external debts, reflecting a significant increase compared to the previous year. The surge in borrowing highlights the mounting pressure on state finances for debt repayment, exacerbated by naira depreciation.

Data from the FAAC disbursement revealed a substantial increase in allocations to states, yet many resorted to fresh borrowing, with Oyo State leading in domestic loans. The report underscores the financial challenges faced by states in managing debt obligations amidst economic uncertainties and currency devaluation, impacting their fiscal sustainability.