Nigeria TV Info 

Govs Bank on FAAC, Loans to Fund 2026 Budgets Amid Revenue Shortfalls

Nigeria’s state governors are increasingly relying on Federation Account Allocation Committee (FAAC) disbursements and external/internal loans to finance their 2026 budgets, reflecting widening revenue gaps and weak internally generated revenue (IGR) across the federation. Lagos State, with a record N4.237 trillion budget, plans to fund most recurrent and capital spending through FAAC and borrowing, leaving a N409bn deficit that must be filled with bonds and credit. Similarly, Ogun State’s N1.669tn budget combines IGR, federal funds, and loan receipts, while Sokoto and Bayelsa show heavy dependence on federal transfers and grants. Analysts warn that such reliance on volatile federal inflows and debt poses sustainability risks and discourages fiscal innovation at the sub‑national level. They urge reforms to boost IGR and incentivise revenue diversification.