Workers represented by the National Union of Local Government Employees and state chapters of the National Union of Pensioners have expressed their concerns and demanded transparency from State Governments regarding the increasing debt owed to commercial banks, which has reached N2.2 trillion.

Data from the Central Bank of Nigeria's (CBN) quarterly statistical bulletin revealed that as of March 2023, the combined debt of state and local governments had surged to N2.21 trillion. A closer examination of the data shows that state governments' debt alone increased by N240 billion, reaching N1.97 trillion.

In light of the revelations from the CBN statistical bulletin, the workers' unions have criticized state governments for their mounting debt and called for greater accountability in utilizing these funds. They expressed frustration over stagnant wages and deteriorating living standards, despite the increasing debt burden.

Speaking to PUNCH newspaper, the workers' associations expressed their dissatisfaction, accusing state governments of failing to prioritize the welfare and living conditions of workers and pensioners while borrowing from commercial banks.

Igbokwe Chukwuma, Chairman of the Association of Senior Civil Servants of Nigeria, Enugu State Chapter, expressed surprise at the state governments' borrowing practices, as there is no evidence to suggest that the borrowed funds were used to clear workers' arrears. Many states, such as Abia, Plateau, and Benue, still owe workers' salaries ranging from three to nine months.

Bunmi Ogunkolade, the Head of Information of the National Union of Pensioners, echoed Chukwuma's sentiments, criticizing the governors for mismanaging the funds. She stressed that the loans have not translated into improved living conditions for residents, workers, and pensioners. Ogunkolade called for greater transparency and accountability from the state governments in disclosing how the borrowed funds are being utilized.

Hakeem Ambali, the National President of NULGE, emphasized that local governments have not witnessed any benefits from these loans, further adding to the workers' concerns.

Economist Paul Alaje expressed his bitterness over the apparent mismanagement of funds by state governments and stressed the importance of conducting a thorough investigation into how these funds are being utilized. Alaje highlighted the burden of debt, particularly when borrowed funds are not channeled into capital expenditures or revenue-generating projects for the government's future benefit. He also raised concerns about the challenges faced by newly elected governors inheriting substantial debt burdens from their predecessors.

As the debt levels continue to rise, workers' unions are steadfast in their demand for accountability, urging state governments to prioritize the welfare of workers and pensioners and ensure that borrowed funds are used judiciously for the overall development of the states.