States across Nigeria owe contractors and retirees a combined ₦1.06tn in outstanding obligations despite receiving record revenues in 2024, according to new data from BudgIT’s 2025 State of States report.
The report shows that contractor arrears stood at ₦434.87bn, while pension and gratuity arrears amounted to ₦626.81bn, underscoring persistent fiscal strain at the subnational level even as federal allocations more than doubled and many states recorded higher internally generated revenue.
Thirty states reported owing either contractors or retirees during the 2024 fiscal year. Twenty-six carried contractor debts, while 27 reported unpaid pensions and gratuities.