The 19 northern Nigerian states have cumulatively generated a whopping N2.586.57 trillion as their revenue in 2023, an analysis of BudgIT report showed.
The report, tagged State of States 2024 Report, analysed Nigerian states revenue including Federal Account Allocations, Internally generated revenue (IGR) and the overall financial standing of the states.
It also analysed expenditure in the health sector across the states.
WikkiTimes review of the report indicated that the states’ cumulative revenue includes FAAC allocations of N2.115 trillion and N 471.57 billion IGR.
However, despite the humongous resources, according to the analysis of the report, the states owe a cumulative N283.09 billion gratuity obligations that have not been settled for the retired civil servants in their states as at the end of 2023.
The analysis further showed that the states have incurred the sum of N1.973 trillion as their collective domestic debts by the end of 2023.
According to the report, the states also have accumulative foreign debts of $1.596 billion as at the period under review.
Kaduna
The BudgIT report showed that Kaduna in 2023 had received FAAC of N110.89bn and generated N62.42bn IGR. It also has a domestic debt of N85.52bn and foreign debt of $587.07m while pension and gratuity liability stand at N1.69bn with the time in focus.
Kano
The report showed that Kano in 2023 received FAAC of N179.46bn and generated N40.51bn IGR. It also has a domestic debt of N122.36bn and foreign debt of $107.92m, while pension and gratuity liability stand at N6.68bn.
Sokoto
For Sokoto State, the report noted that in 2023, it had received FAAC of N81.37bn and generated N18.16bn IGR. It also has a domestic debt of N89.22bn and foreign debt of $36.47m, while pension and gratuity liability stand at N8.38bn.
Zamfara
Zamfara received a total of N65.28bn from FAAC in 2023. Alongside this, the state generated an internal revenue of N22.16bn. As of the end of the year, the domestic debt stood at N110.57bn, while the external debt was recorded at $29.05m. The pension and gratuity obligations for Zamfara amounted to N8.42bn.
Kebbi
Kebbi’s financial situation in 2023 shows a FAAC allocation of N67.70bn. The state’s internally generated revenue reached N11.74bn. On the debt front, Kebbi carries N60.69bn in domestic debt and $40.30m in external debt. There were no pension or gratuity liabilities reported for the state.
Katsina
In 2023, Katsina received N105.15bn from FAAC, and generated N20.84bn in IGR. The state faces a substantial debt burden with a domestic debt of N99.31bn and external debt totaling $50.31m. Pension and gratuity liabilities for Katsina were N6.35bn.
Jigawa
In 2023, Jigawa recorded a FAAC allocation of N133.17bn, with N11.68bn generated internally. The state’s domestic debt stands at N42.76bn, with an external debt of $25.80m. For pension and gratuity, N10.44bn was owed as at 2023.
Benue
According to the report, Benue received N91.39bn in FAAC allocations for 2023, with an internal revenue generation of N19.20bn. The state’s domestic debt is high at N187.18bn, and $29.87m in external debt. The pension and gratuity liabilities in Benue are N74.30bn.
Kogi
The 2023 report shows that Kogi had a FAAC allocation of N93.03bn and raised N23.59bn through internal revenue. Kogi’s domestic debt totals N121.81bn, while external debt is $51.17m. The pension and gratuity liability stands at N4.08bn.
Kwara
In 2023, the report said, Kwara received N115.11bn from FAAC and generated N48.47bn in IGR. The state has accumulated N109.16bn in domestic debt, while its external debt is $44.56m. Pension and gratuity obligations for Kwara total N19.02bn.
Nasarawa
The BudgIT said Nasarawa received N170.75bn from FAAC in 2023, with N28.06bn generated in internal revenue. The state’s domestic debt is N71.15bn, and external debt stands at $51.89m. There are no pension or gratuity liabilities recorded for Nasarawa.
Niger
Niger State received N151.50bn from FAAC and generated N22.50bn in internal revenue. The domestic debt for the state is N139.80bn, and it owes $68.06m in external debt. The pension and gratuity liabilities are significant at N28.62bn.
Plateau
Plateau got a total of N121.71bn from FAAC in 2023, with N25.84bn generated through internal revenue. The state carries N173.93bn in domestic debt and $32.25m in external debt. Pension and gratuity liabilities total N20.28bn.
Bauchi
In 2023, Bauchi received N122.41bn from FAAC and raised N30.33bn in internal revenue. The state faces N160.81bn in domestic debt, alongside $187.63m in external debt. Pension and gratuity obligations were N31.21bn.
Adamawa
It got a FAAC allocation of N86.02bn for 2023 and generated N17.07bn in IGR. The state’s domestic debt is N138.26bn, with an external debt of $103.20m. Adamawa also has pension and gratuity liabilities amounting to N27.20bn.
Borno
For 2023, Borno had a FAAC allocation of N142.19bn and raised N22.55bn in IGR. The state’s domestic debt stands at N98.77bn, with external debt totaling $20.49m. Borno’s pension and gratuity obligations amount to N2.95bn.
Gombe
Gombe’s financial standing in 2023 includes a total FAAC allocation of N110.49bn and an internal revenue generation of N15.17bn. The state has N88.97bn in domestic debt and $54.88m in external debt. Pension and gratuity liabilities are N10.47bn.
Taraba
According to the report, Taraba received N94.23bn in FAAC funds for 2023 and generated N10.43bn in IGR. The domestic debt for the state stands at N81.33bn, with external debt at $23.43m. Pension and gratuity liabilities are reported at N18.67bn.
Yobe
The report shows that for 2023, Yobe got a FAAC allocation of N89.23bn and an IGR of N11.19bn. The state carries N91.42bn in domestic debt and $21.49m in external debt. The pension and gratuity liabilities for Yobe are N4.33bn.
Zamfara
Zamfara got a total of N65.28bn from FAAC in 2023, with N22.16bn generated through internal revenue. The state carries N110.57bn in domestic debt and $29.05m in external debt. Pension and gratuity liabilities total N8.42bn.
On IGRs, Debts
The analysis of the report shows that Kaduna State has topped the 19 Northern states in terms of IGR in 2023 with a total sum of N62.42 billion generated over the year.
According to the BudgIT data the state outranked Kano(Centre of Commerce) that generated N40.51bn while Kwara followed second with strong IGRs of N48.47 billion.
The recently unveiled report indicated the states are almost entirely reliant on FAAC allocations to maintain governance machinery running as only an insignificant majority of them recorded promising IGR.
WikkiTimes analysis of the data revealed that states such as Taraba, Yobe and Jigawa recorded lowest of N10.43bn, N11.19bn and N11.68bn respectively throughout the year.
“Internally Generated Revenue (IGR) for the state maintained a downward trend over the last two fiscal years, falling from N42.01bn in 2021 to N19.91bn in 2022 and then falling again to N11.68bn in 2023. In the last two years, Jigawa captured grants to local governments as part of its IGR, which BudgIT disregarded because its methodology doesn’t consider grants as part of IGR”, read a segment of the report on Jigawa’s IGR.
Rising Domestic, Foreign Debts
As the country continues to struggle with the rising inflation, the States have been struggling with domestic and external debts.
For instance, despite their low IGR, Benue, Plateau and Bauchi states take the lead in domestic debts with N187.18bn, N173.93bn and N160.81bn respectively while Kaduna state outshined all in external debts with $587.07 million.
According to the data, Niger has a domestic debt of N139.80bn, Adamawa N138.26bn while Kano and Kogi states have N122.36bn and N121.81bn respectively.
On the external debt profile, Kaduna state was followed by Bauchi a debt of $187.63m, followed by Kano $107.92m while Adamawa and Niger states have a debt of $103.20m and $68.06m respectively.
“Kaduna’s debt burden over the last six years has grown from N153.97bn in 2018 to N613.53bn in 2023, resulting in a 298.48% growth. Kaduna is currently the 2nd most-indebted state in the country, behind Lagos in terms of domestic borrowings. While the state’s debt growth has been relatively high over six years compared to the other Northwestern states, Kaduna has the second highest foreign debt, at $587.07mn, and a total debt per capita of N60,264”, says BudgIT.
WikkiTimes further analysis of the document noted that the high debt profile of the states is linked to their investments in infrastructures such as road and flyovers, even though it posed threats to their fiscal strength.
Pension and Gratuity Liabilities
On the pension and gratuity liabilities, the report revealed that 19 states have accumulated N283.09 billion as at 2023 over the years.
Benue state carries the heaviest burden amounting to ₦74.30 billion while Bauchi and Niger also report substantial pension liabilities at N31.21 billion and N28.62 billion.
While states like Kebbi and Nasarawa report zero pension liabilities as per the report, Niger and Plateau have pending liabilities of N28.62bn and N20.28bn while Kwara and Taraba states have recorded N19.02bn and N18.67bn respectively.
Yawale Adamu is an investigative reporter driven by a passion for accountability and purposeful leadership.
He specializes in crafting compelling stories in both English and Hausa, with a focus on amplifying the voices of marginalized and underreported communities, offering hope and advocating for justice through his reportage.
Experience
With over a decade of experience, Yawale has produced numerous investigative stories that uncovered corruption, abuse of power, and mismanagement of public funds. From 2012 to 2022, he also served as a newscaster and translator at BRC FM Misau.
Awards
Yawale was honored as the Best Reporter of the Year at BRC FM Misau for the 2012–2013 period, reflecting his dedication and impact in the field of journalism.
