Eight northern Nigerian states have collectively allocated N211,700,000,000 for debt servicing in 2025, raising concerns over financial sustainability and economic development.
A review of their budget documents reveals that Kaduna State has the highest debt servicing allocation at N70.8 billion, consuming over 63% of its projected internally generated revenue (IGR). Plateau State follows with N33.4 billion, while Bauchi State has earmarked N29.8 billion for debt repayments.
Other states trailing with less allocations for debt servicing are Zamfara N15.1 billion, Kano N12.1 billion, Kebbi N11.3 billion, Nasarawa, N6.4 billion and Jigawa N4.8 billion
Debt Servicing vs. Economic Growth
The rising debt servicing costs raise concerns about the ability of these states to invest in critical sectors like education, healthcare, and infrastructure. Experts warn that unless states improve their revenue generation strategies and adopt better debt management practices, excessive loan repayments could hinder economic growth.
The Way Forward
Experts contend that to reduce reliance on loans northern states need to boost IGR through investments in agriculture, technology, and trade while cutting unnecessary spending,
The states must also enhance budget transparency and prioritize productive borrowing for their long-term economic benefits.
As debt repayment burdens continue to rise, stakeholders emphasize the need for a sustainable fiscal strategy to ensure long-term development in northern Nigeria.
