Kaduna to spend 71% IGR on debt servicing in four years

By solacebase.com On Jan 3, 2026

Kaduna , IGR , debt servicing, — Kaduna to spend 71% IGR on debt servicing in four years

By Aminu Abubakar

A SolaceBase review of the Kaduna State Medium Term Expenditure Framework for the period between 2025 and 2028 has shown that 71% of the Internally Generated Revenue planned for the state is expected to be spent on debt servicing.

According to the document, the state plans to generate N112.1 billion in 2025, N84.5 billion in 2026, N90.4 billion in 2027, and N98.3 billion in 2028.

Further review of the document shows that debt servicing is expected to take a substantial percentage of the state’s internally generated revenue in the listed years.

For instance, in 2025, debt servicing is expected to gulp N70.8 billion, while the projection for 2026 stands at N76.6 billion, the estimate for 2027 is N66.3 billion, and that of 2028 is projected at N61.9 billion.

In total, internally generated revenue between 2025 and 2028 is estimated to be N385 billion, while debt servicing in the same period is planned to be N275 billion.

This would mean that 71.4% of the state’s IGR will be spent on debt servicing between 2025 and 2028.

Further review also shows that Kaduna State plans to rely on loans.

The review of the MTEF document shows that the state plans to borrow a total of N659 billion between 2025 and 2028.

According to the document, N145.7 billion is projected to be borrowed in 2025, N184.1 billion in 2026, N166 billion in 2027, and N163.8 billion in 2028.

Kaduna State’s external debt stood at $658.7 million as of June 2025, more than six times higher than that of any other Northwestern state. This amount represents approximately 63 percent of the region’s total foreign obligations, which collectively amount to $1.047 billion.

Despite relying on loans and its high debt servicing figures, the state has continued to spend on luxury items.

For instance, a SolaceBase review of the Kaduna State budget performance document for the third quarter of 2025 revealed that a total of N3.2 billion was spent on estacode for international trips between January and September 2025.

Estacode refers to the travel allowance paid to public officials for trips outside their duty station, particularly in Nigeria and former British colonies. It is a daily stipend covering expenses for international or long-distance domestic travel.

Estacode Spending Surpasses Key Development Sectors

While the state spent N3.2 billion on estacode for international trips, it allocated N2.4 billion to the Barau Dikko Teaching Hospital in Kaduna. The Kaduna State College of Nursing and Midwifery also spent N333.1 million, which is significantly less than the N3.2 billion used for estacodes on international trips.

The state also expended N3.2 billion on capital projects for its Primary Healthcare Board — the same amount it spent on estacodes for international trips.

Only N3 billion was spent on the construction and provision of health centres, while just N477 million went toward the construction and provision of water facilities — all between January and September 2025. These figures remain lower than the N3.2 billion spent on estacodes for international trips by the Kaduna State Government.

Earlier, a review of the Kaduna State-approved 2025 budget showed that the government allocated N3.8 billion for the purchase of vehicles for lawmakers.

This allocation comes despite the fact that in 2024, the state had already spent N1.5 billion for the same purpose. If the entire N3.8 billion is expended in 2025, total spending on lawmakers’ vehicles over two years will reach N5.3 billion.

Despite the significant funds earmarked for lawmakers’ vehicles, the Kaduna State Government allocated a smaller amount for critical water infrastructure projects in 2025.

A total of N2.9 billion was earmarked for the construction and provision of water facilities — N900 million less than the amount budgeted for vehicle procurement. Additionally, only N602.8 million was set aside for the rehabilitation of existing water infrastructure.

Not just in 2025

A review of the 2024 budget performance showed that the state spent poorly on internal security, despite numerous incidents of insecurity and killings recorded due to bandit attacks.

According to the document, N15.4 billion was budgeted for capital expenditure under Kaduna State’s Ministry of Internal Security in 2024. However, only N27.8 million was spent between January and October of that year.

In 2023, the state government budgeted N4.1 billion for the ministry’s capital expenditure but spent only N2.7 billion throughout the year.

On September 17, 2024, bandits attacked a church in Kaduna, killing three and abducting many others. Seven days earlier, bandits struck again, attacking a hospital and abducting nurses, doctors, patients, and others.

On November 23, 2024, it was reported that bandits abducted a Kaduna village head and fourteen others.

Another twenty-two persons were abducted by bandits on September 6, 2024, in a Kaduna village.

In March 2024, bandits abducted over eighty persons in Kaduna, while in May, attackers killed six persons.

It had earlier been reported that 289,375 people were displaced by bandits across 551 communities in 12 local government areas of Kaduna State.