The Federal Government is taking steps to regulate the indiscriminate borrowing by state governments from banks and the capital market.

The Fiscal Responsibility Commission is working on providing a template to ensure that state governments fulfill all necessary requirements and comply with guidelines before securing loans.

The aim is to make it less easy for states to borrow without proper checks and prevent the country from falling deeper into a debt situation.

The commission will work with the Central Bank of Nigeria (CBN) to issue proper guidelines to banks regarding lending to states.