A recent investigation by The PUNCH reveals that at least 24 states in Nigeria may struggle to pay workers’ salaries this year without waiting for federal allocations.
Analysis of the approved budgets for the 2024 fiscal year indicates that only 11 out of the 36 states can independently cover their workers’ salaries without depending on federal funds.
States like Lagos, Kano, Anambra, Edo, and others exhibit robust internal revenue streams, enabling them to sustain salary payments. The budget data, available on Open States, a BudgIT-backed website, highlights the fiscal situation of most states, except Rivers State, whose budget information remains inaccessible.
The analysis indicates that 24 states lack sufficient Internally-Generated Revenue (IGR) to fund salary payments, potentially leading them to rely on federal allocations or resort to borrowing from financial institutions.
Source: Punch