By Muhammad Mamman
President Bola Ahmed Tinubu has declared that state governments across Nigeria are no longer resorting to bank loans to pay workers’ salaries, attributing the shift to improved fiscal conditions and reforms introduced by his administration.
Speaking during a public address, Tinubu said the financial standing of states had significantly stabilised, insisting that governors now have enough resources to meet their obligations to civil servants without borrowing.
“No governor in this country, in any of your states, is now running around the bank to borrow money to pay the salary of their workers,” the president said.
Tinubu argued that the reforms implemented by the federal government since he assumed office have increased revenue available to sub-national governments, enabling them to better manage their finances.
He noted that improved allocations and fiscal restructuring had strengthened the ability of states to fund essential services and meet salary obligations, a challenge that had plagued several states in previous years.
In the past, multiple state governments struggled with mounting wage bills, often relying on loans or federal intervention to settle arrears owed to civil servants. The situation frequently triggered labour disputes and protests by workers demanding unpaid wages.
However, the president maintained that the current economic measures have changed the narrative, giving governors greater financial capacity and flexibility.
Tinubu also called on state governments to prioritise prudent financial management and ensure that increased revenues translate into improved welfare for citizens and sustainable development across the country.
Analysts say the president’s remarks come amid ongoing debates over the impact of economic reforms and the financial health of states, particularly as Nigerians continue to grapple with the broader effects of policy changes on the economy.
