36 States owe N658 billion leaving Buhari with no option but to ‘raid’ ECA

The Federal Government has confirmed that 36 states owe a total of N658 billion ($3.3 billion). This figure was confirmed following the meeting between the State Governors and the President in Abuja on Tuesday.

Most State Governments are currently facing a financial crisis due to falling crude oil revenue and high cost of servicing debts. This has made it difficult for most states to pay staff salaries and other pertinent government obligations.

According to Reuters, a possible way out of the crisis recommended in the meeting was for banks to extend loans made to states to up to 20 years.  

President Muhammadu Buhari said in a statement after a meeting with the state governors that the government could recover billions of dollars and, in the short term, some money from the Excess Crude Account could be used to cover salaries.