A Wikki Times Review of northcentral states 2024 has shown that three northcentral states plan to borrow N89.2 billion loans in 2024.
Three states reviewed for this report are; Kogi, Benue and Kwara.
In Benue state, the sum of N34.5 billion is planned as a loan in 2024, while N158.4 billion is expected to be received from FAAC and N23.9 billion internally generated revenue.
This would mean that in Benue state, 15.9% of the state’s total revenue is dependent on loans.
In Kogi state, 14% of the expected revenue are dependent on loans, while in Kwara 12.2% of budgeted revenue are expected to be sourced from loans.
Further analysis shows that Kogi state plans to borrow N21 billion from domestic sources and another N6 billion externally.
Kwara state plans to borrow all of its N27.3 billion from external sources while Benue aims to borrow N27.7 billion domestically and N6.8 billion externally.
Kwara state plans to spend the sum of N11.1 billion for debt charges in 2024.
In 2023, it spent the sum of N12.7 billion on debt servicing.
In three years (2022-2024), Kwara state would have spent N41 billion on debt servicing if it achieves 100% expenditure on its 2024 budgeted plan.
Kwara state plans to spend equivalent 50% of its education budget capital expenditure on debt servicing, N22 billion was budgeted for education ministry capital needs.
Northern states continually rely on loans for their budget execution, a development that usually leaves the burden of loan repayment and also high debt servicing figures.
WikkiTimes report had earlier highlighted how states spend more on debt servicing than critical infrastructure .
Newly elected governors have also lamented the impacts of high loan portfolios on their ability to run the affairs of states.
Although these states raise alarm they also plan to borrow high figures in 2024.
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