Debt servicing consumes 38.4% of Kano’s Q1 2025 revenue amid water, health sector strain
By Aminu Abubakar
A SolaceBase review of the Kano State budget performance document for the first quarter of 2025 has revealed that a substantial portion—38.4%—of the state’s internally generated revenue was allocated to debt servicing, raising fresh concerns over the government’s fiscal priorities.
According to the document, Kano State generated a total of N12.5 billion between January and March 2025. Of this amount, N4.8 billion was expended on debt servicing. In stark contrast, significantly smaller allocations were made to key sectors. The Ministry of Water Resources, for example, received just N225 million for capital expenditure during the same period.
Likewise, the state Ministry of Health received only N316 million in capital funding, amounting to less than 7% of what was spent on debt obligations.
Read Also: High poverty rate fails to deter frivolous spending by Kano, Kaduna state govts
The stark imbalance in spending has prompted concern from analysts and civil society organisations, who warn that critical investments in infrastructure and public health are being sidelined in favor of debt repayment.
This is not an isolated trend. In the first half of 2024, Kano State reportedly spent a staggering N60 billion on debt servicing, reflecting a longer-term pattern of escalating financial commitments that limit spending flexibility in other areas.
These expenditures are occurring against the backdrop of persistent water scarcity in the state, a crisis with direct public health implications.
Inadequate access to clean water has long been associated with the spread of waterborne diseases such as cholera. In April 2022, Kano recorded five deaths and 189 confirmed cholera cases. The situation was considerably worse in 2021, when between March and September, 329 people died and at least 11,475 cases were documented across the state’s 44 local government areas.
Read Also: Kano, Jigawa, Katsina, Zamfara, can’t pay salaries with IGR in 2025
Water access is not only critical to preventing disease outbreaks but also fundamental to healthcare delivery, sanitation, and daily hygiene. According to health experts, the absence of clean water directly contributes to elevated mortality rates, especially in low-income and densely populated communities.
Recent data from the National Bureau of Statistics (NBS) underscores the severity of the problem: 39% of households in Kano lack access to clean drinking water, while 51% do not have access to basic sanitary facilities. These statistics paint a troubling picture of widespread infrastructure gaps that require urgent and substantial investment.
A previous report highlighted local government areas most severely affected by perennial water shortages. These include Dala, Fagge, Gwale, Kano Municipal, Kumbotso, Tarauni, Nassarawa, and Ungogo—areas where residents largely depend on the state water board, boreholes, and water vendors for their daily water needs.
In light of these challenges, development experts and economists have called for a reassessment of budgetary priorities to ensure a more balanced allocation of resources. They stress the importance of channeling more funds into vital sectors such as water supply, healthcare, and sanitation.
There is also growing advocacy for states to reduce their dependence on loans as a primary source of funding. Experts argue that excessive borrowing results in long-term debt burdens and high servicing costs, which in turn diminish the funds available for essential development projects.
Kano State’s borrowing trajectory appears to support these concerns. For the 2025 fiscal year, the state plans to borrow N45.8 billion—an amount that exceeds half of its projected revenue of N85 billion. This raises further questions about the sustainability of the state’s financial strategy.
As debt continues to consume a large share of Kano’s revenues, there are increasing calls for reforms that include diversifying revenue sources, enhancing internally generated revenue (IGR) mechanisms, and enforcing prudent fiscal management to ensure long-term growth and improved living conditions for residents.
Comments are closed.