No fewer than 10 Nigerian states are planning to raise about ₦4.3 trillion through loans, bonds, grants and public-private partnerships to finance their 2026 budgets. The states—Lagos, Abia, Ogun, Enugu, Osun, Delta, Sokoto, Edo, Bayelsa and Gombe—have proposed combined budgets of ₦14.17 trillion.
Findings show that rising capital ambitions and weak revenue management are pushing states beyond statutory allocations, VAT receipts and internally generated revenue. Lagos leads with a ₦4.24 trillion budget, of which ₦1.12 trillion is expected from borrowing. Abia plans to raise ₦409 billion to close funding gaps, while Ogun, Enugu and Delta will rely on loans for over 30 per cent of their budgets.
Economists warn that the growing dependence on non-recurring funds reflects poor fiscal discipline rather than revenue scarcity. They caution that unchecked borrowing could worsen debt burdens and shift today’s fiscal failures to future generations.
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