Ten Nigerian states are planning to raise about ₦4.3 trillion from loans, bonds, grants and other special funding sources to support their 2026 budgets. The states include Lagos, Abia, Ogun, Enugu, Osun, Delta, Sokoto, Edo, Bayelsa and Gombe. Together, they have presented budgets worth over ₦14 trillion, with a large part of the money meant for roads, schools, hospitals and other development projects.

Many of these states say their normal income — such as federal allocations and internally generated revenue — is not enough to cover their spending plans. As a result, they are turning to borrowing and other non-regular funding to close the gap. Experts warn that while borrowing can help fund development, it becomes risky when it is done too often without strong financial discipline.

Some economists argue that Nigeria’s main problem is not lack of revenue, but poor management of public funds. They say weak oversight, revenue leakages and budget violations are pushing governments to rely on loans instead of fixing internal financial problems. Labour leaders also complain that many budgets are not fully implemented, making borrowing look necessary even when it should not be.

Despite these concerns, state governments insist they need the funds to fix long-neglected infrastructure and improve services. However, analysts caution that if borrowing is not properly managed and linked to real economic growth, it could create heavy debt burdens for future generations and weaken long-term financial stability.