Kaduna leads as Northwestern states external debts grow to over $1bn in 2024
By Aminu Abubakar
A SolaceBase analysis of the recently released state debt profile by the Debt Management Office (DMO) reveals that Kaduna State is the most indebted state externally among the Northwestern states of Nigeria.
According to the DMO report, as of December 2024, Kaduna State owed $625 million in external debt, topping the list in the region.
Following Kaduna is Kano State, with an external debt profile of $122 million. Katsina State is next at $100.4 million, while Kebbi State owes $51.3 million. Sokoto State has an external debt figure of $51 million, Zamfara State owes $29 million, and Jigawa State, another Northwestern state, owes $23.3 million.
Collectively, the seven Northwestern states owe over $1 billion in external debt as of the end of 2024.
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Domestic Debt Burden
In addition to external debts, Northwestern states are also grappling with significant domestic liabilities. As of December 2024, the total domestic debt owed by the region stands at approximately N243 billion.
Kano State again leads on the domestic front with a debt of N60.649 billion, followed by Zamfara State with N59.044 billion. Sokoto State owes N55.409 billion, while Kaduna State has a domestic debt of N25.764 billion. Katsina State owes N25.679 billion, Kebbi State owes N15.222 billion, and Jigawa State reports the lowest domestic debt in the region at N1.329 billion.
Rising Debt Servicing Costs
A further breakdown of the financial data reveals that Northwestern states are spending substantial portions of their budgets on debt servicing. In the first half of 2024 (January to June), Kano State spent N60 billion on public debt servicing. Meanwhile, Katsina State spent N12.7 billion on debt servicing between January and September 2024.
These growing debt servicing obligations are raising concerns about the fiscal sustainability and developmental priorities of the states, especially in light of widespread socio-economic challenges.
A SolaceBase review of budget performance documents earlier shows that Katsina state spent 79.3% of its internally generated revenue in the first six months of 2024 on debt servicing, refreshments and honorarium/sitting allowances.
The data shows that in the first six months of 2024, the state earned N10.5 billion as internally generated revenue.
In the same period, it spent N8.092 billion on debt servicing
Socioeconomic Challenges Amid High Borrowing
The rising debt levels come amid persistent poverty and unemployment across the region. Data from the 2022 Multidimensional Poverty Index indicates troubling unemployment rates: Kaduna State had an unemployment rate of 44.3%, Kogi State stood at 39%, Niger State at 38.8%, Jigawa State at 38.7%, and Kano State at 25.4%.
Observers have noted the mismatch between the mounting debt and the slow pace of infrastructural and social development in many of these states, raising questions about transparency, accountability, and the actual impact of borrowed funds on citizens’ lives.
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