Abia, Imo, three others borrowed to survive in 2022 – BudgIT

Abia, Imo, Yobe, Zamfara and Plateau States borrowed to sustain their recurrent and capital expenditures.

BudgIT disclosed this on Tuesday in its recently released State of States report.

The report reveals that the combined Internally Generated Revenue, federation allocation and other fund sources in Abia, Imo, Yobe, Zamfara and Plateau cannot sustain their recurrent expenditure.

The recurrent expenditures include salary payments, pensions, gratuities, service-wide votes, and overheads.

“Five states—Abia, Imo, Yobe, Zamfara, and Plateau—did not raise enough total revenue (their combined IGR, federal allocations, and grants) to cater to their recurrent expenditure. It means these states resorted to borrowing to manage some parts of their recurrent expenditure and capital expenditure”, the report stated.

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The situation is more problematic for Abia and Imo, which consistently receive 13 per cent oil derivatives. recalls that for the first Quarter of 2022 alone, Abia, Akwa Ibom, Bayelsa, Delta, Edo, Imo, Lagos, Rivers and Ondo States received N144.31 billion from the federation allocation as 13 per cent oil derivative.

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