State govts owe banks N2.2 trn, N790bn to retirees

States governments are groaning over debts, compounded by new wage awards, which federal government hurriedly granted in the wake of the removal of fuel subsidy, as they battle low Internally Generated Revenue (IGR), worsened by the general decline in the economy. Findings revealed that over 21 states in Nigeria owe retirees N790 billion inherited pensions and gratuities. Also, state governments have been said to borrow from banks to pay salaries.

Based on findings, Rivers state and Benue state top the list of states with a backlog of unpaid pensions and gratuities to the tune of N119 billion and N100 billion respectively. The South west zone emerged first with N256 billion while the South south is closely behind with N225 billion.