– Osun leads other five states in states which are termed debt ravaged states
– Some states in the country are presently having a running battle with civil servants due to backlog of unpaid salaries
– A good number of states run into the ditch of debt due to misplacement of priorities in terms of execution of projects and financial recklessness
When the Federation Accounts Allocation Committee (FAAC) released its report for the month of April, it was not a surprise that some states got little or next to nothing from the federation account due to debt burden. These debt ravaged states are facing serious challenges at meeting up with their financial obligations. From capital to recurrent expenditure, many states are really lagging behind.
One of the reasons for this is that several states in Nigeria always fail to apply the elementary economic theories of scale of preference and opportunity cost.
Currently, there are six state governors who need to buckle up and think outside the box in trying to solve its economic quagmire.
1. Rauf Aregbesola (Osun state governor)
For Osun, it received an allocation close to N2.03 billion from the federation account. However, this was not enough to pay its overall debt of N2.391 billion to the federal
Governor Rauf Aregbesola of Osun state
2. Seriake Dickson (Bayelsa state governor)
For Bayelsa’s N3.207 billion, an equivalent of 66.7% was deducted from N4.812 billion allocated to the state in the month of April.
Governor Seriake Dickson of Bayelsa state
3. Ben Ayade (Cross River state governor)
Cross River is part of the group owing N1.405 billion. This makes 63.46% of its own allocation.
Governor Ben Ayade of Cross River
4. Ibikunle Amosun (Ogun state governor)
The Gateway state is in a debt of N1.185 billion, which is equivalent of 57.2% of its monthly allocation for April.
Governor Ibikunle Amosun of Ogun state
5. Simon Lalong (Plateau state governor)
Plateau owed N1.248 billion, which is an equivalent of 56.52% of the allocation it received in April.
Governor Simon Lalong of Plateau state
6. Ayodele Fayose (Ekiti state governor)
Ekiti is owing federal government N1.067 billion, which is an equivalent of 55.33% of its allocation