Amid revenue challenge , Kebbi to splash N1 bn on Abuja office, another N5bn on VIP lodge

By Aminu Abubakar

Amid mounting revenue pressures and rising debt sustainability concerns, the Kebbi State Government has earmarked N1 billion for the rehabilitation of its liaison office in Abuja and another N5 billion for the construction and equipping of a new VIP lodge in its 2026 approved budget.

The allocations are contained in the 2026 Appropriation Law and form part of a broader spending framework that signals ambitious capital expansion despite structural weaknesses in the state’s revenue base.

The development comes against the backdrop of a debt sustainability analysis published by the Kebbi State Government on its official website, which outlines an expansive fiscal plan heavily dependent on federal allocations and borrowing to fund infrastructure and other capital projects.

A detailed review of the fiscal documents by SolaceBase shows that while the state is projecting massive capital investments over the medium term, it continues to grapple with weak internally generated revenue (IGR), raising questions about fiscal priorities and long-term sustainability.

Abuja Liaison Office, VIP Lodge Allocations

Under the Office of the Secretary to the State Government, N1 billion is allocated in the 2026 budget for the “Rehabilitation of State Liaison Office Abuja.” The same office also has a provision of N5 billion for the “Provision for construction and equipping of new VIP lodge.”

The N1 billion allocation for the Abuja liaison office represents a 100 per cent increase from the N500 million originally budgeted for the project in 2025. Budget performance records indicate that only N31.66 million had been spent on the project between January and September 2025, reflecting slow implementation within the fiscal year under review.

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Further analysis of the 2026 budget shows that the Office of the Secretary to the State Government has a total allocation of N24.8 billion for the fiscal year, compared to N40.26 billion in the 2025 revised budget. As of September 2025, performance stood at N9.08 billion, indicating that less than a quarter of the revised 2025 allocation had been utilised within the first nine months.

Beyond the Abuja office and VIP lodge, several other high-value procurements are captured in the 2026 estimates.

A sum of N3 billion is provided for the “Purchase of 35 No 2024 Toyota Hilux for Government Vehicles for various MDA CEO.” The project, classified under “Purchase of Motor Vehicles,” had received N2 billion in both the 2025 original and revised budgets, with N572 million recorded as performance between January and September 2025.

Similarly, the government allocated N500 million in 2026 for the “Purchase of 2 nos of Staff Car and 2 no Convoy Vehicles.” This marks an increase from the N250 million provided in both the 2025 original and revised budgets, where no expenditure had been recorded as of September 2025.

The budget also earmarks N300 million for the “Purchase of 30 sets of office furniture” in 2026. The same item had a N200 million allocation in 2025, but with zero performance recorded within the first nine months of that year.

For infrastructure related to staff welfare, N200 million is allocated in 2026 for the “Rehabilitation of Staff Quarters across the state.”

Disaster-Related Allocations

The 2026 budget introduces fresh allocations for disaster-related procurements under the State Emergency Management Agency (SEMA). These include N1.5 billion for the “Purchase of 4,500 Mattress for Desaster Victims (SEMA),” N2.5 billion for the “Purchase of 4,200 Tones of Cement for Disaster Victims (SEMA),” N1 billion for the “Purchase of 5,250 Tones of Grains for Disaster Victims (SEMA),” and N2.5 billion for the “Purchase of 850 Bundles of Roofing Zinc for Disaster Victims (SEMA).”

Another N2.5 billion is allocated for the “Rehabilitation of Disaster Victims’ Shelters in the State (SEMA).”

In contrast, the 2025 budget had included N9 billion for “Special Intervention Grant for Pilgrims Transit and Resource Center,” with N2.41 billion recorded as performance by September 2025. Notably, no allocation was made for this item in the 2026 approved budget, suggesting a shift in funding priorities.

Revenue Projections and Federal Dependence

The Medium Term Expenditure Framework (MTEF) projects total recurrent revenue to grow steadily from N235.23 billion in 2025 to N337.13 billion in 2028. However, a breakdown of the projections reveals overwhelming dependence on federally collected revenues distributed through the Federation Account Allocation Committee (FAAC), including Value Added Tax (VAT).

In 2025, federal allocations — comprising statutory revenue, other FAAC receipts and VAT — are projected at N209.25 billion, representing 88.9 per cent of total recurrent revenue. By 2028, this figure is expected to rise to N319.17 billion, accounting for 94.7 per cent of recurrent revenue.

This growing reliance on federal transfers underscores Kebbi’s vulnerability to fluctuations in oil prices, national revenue performance and federal fiscal policy decisions. Any adverse shift in federal receipts could significantly impact the state’s ability to meet its expenditure commitments.

In contrast, IGR projections reflect a declining trajectory. The state projects IGR of N25.98 billion in 2025. However, this figure is expected to drop sharply by 37.3 per cent to N16.29 billion in 2026, with only a marginal recovery to N17.96 billion by 2028.

The shrinking contribution of IGR to total revenue highlights limited progress in broadening the state’s internal tax base and strengthening economic productivity, raising concerns about fiscal resilience.

Rising Expenditure and Debt Service Pressures

Total expenditure is projected at N575.55 billion in 2025, rising further to N608.84 billion by 2028. Capital expenditure alone accounts for N451.01 billion in 2025, reflecting an aggressive infrastructure drive.

Recurrent expenditure is projected to increase from N124.54 billion in 2025 to N289.17 billion in 2028. Personnel and overhead costs are expected to grow annually by between five and 10 per cent, reflecting inflationary pressures and incremental staffing obligations.

One of the most significant implications of the expansive capital programme is the anticipated rise in public debt service obligations.

According to the Debt Sustainability Report published by the Kebbi State Government, the state’s fiscal outlook remains within a “medium risk” threshold. However, the report warns that mounting borrowing to finance capital projects will increase debt service commitments over the medium term.

Overtime analysts noted that rising debt service could crowd out critical spending on social services if revenue growth does not materialise as projected.

Balancing Infrastructure and Fiscal Prudence

The N1 billion allocation for the Abuja liaison office and N5 billion provision for a new VIP lodge come at a time when Kebbi State faces significant revenue headwinds and increasing debt obligations.

With IGR projected to decline sharply in 2026 and federal allocations accounting for nearly 90 per cent of recurrent revenue, the sustainability of the state’s ambitious capital programme will depend heavily on continued federal inflows and access to borrowing.

As the 2026 fiscal year approaches, attention is likely to focus on how the state balances its infrastructure ambitions with fiscal prudence, particularly in light of its own debt sustainability report highlighting medium-term risks.

The coming years will test whether Kebbi can expand its internal revenue base, manage its debt exposure and deliver on its capital commitments without undermining long-term fiscal stability.