“What we received from the federal allocation in Kaduna this month was N3.6 billion out of over N10 billion. The sum of N7.5 billion was deducted from our allocation to service debts.
“We cannot pay salaries without borrowing. Our salary bill is N5.2 billion. We will have to borrow N2 billion to be able to pay salaries.” The Kaduna state governor, Uba Sani, was stated as saying while lamenting inability of the states to pay salaries .
The loan problem of Northern states does not seem to have a quick ending per WikkiTimes review of different states 2024 budget. New governors were sworn-in in Northern states in May 2023, meaning that they supervised the composition of the 2024 budget.
This report compared 2023 and 2024 budgets of ten selected northern states.
Kano state budgeted to borrow N21.5 billion in 2023, however the first annual budget under the new governor, Abba Yusuf, has a budgeted sum of N25 billion.
| State | Governor | Status |
| Kano | Abba Yusu | New |
| Kaduna | Uba Sani | New |
| Katsina | Dikko Umar Radda | New |
| Kebbi | Nasir Idris | New |
| Gombe | Muhammad Inuwa Yahaya | Reelected |
| Yobe | Mai Mala Buni | Reelected |
| Kwara | Abdulrahman Abdulrasaq | Reelected |
| Benue | Hyacinth Alia | New |
| Bauchi | Bala Mohammed | Reelected |
| Kogi | Usman Ododo | New |
While Kaduna state 2023 loan figure was N61.7 billion, it increased to N150 billion in 2024 under new governor Uba Sani.
States such as Katsina, Kebbi, Yobe also plan increased loans compared to the amount budgeted to be borrowed in 2023. Kwara state’s 2023 loan figure stood at N18.5 billion but it plans to borrow N27.3 billion in 2024.
Borno state also plans to borrow N34.5billion in 2024, as against the N28.7 billion planned for 2023.
States with returning governors are also planning to continue their loan portfolio with states such as Bauchi, Kwara, Yobe , Gombe having high loan portfolios.
The Kaduna State Case Study of Loan Trends
While the Kaduna state governor was quoted as stating that he could not pay salaries due to loans, his 2024 budget for the state does not offer much hope. Review shows that the estimated loan of N150 billion for the 2024 fiscal year is the highest by the state between 2019 and 2024.
The case of public debt charges does not also seem to be ending for Kaduna state,meaning that while more loans are being looked at as a source of succour, the state is also piling debt servicing figures.
What does a high loan portfolio mean for Kaduna state?
Kaduna state spending much on servicing debts accumulated may rob key sectors of revenue that could have been used for their development.
Kaduna state plans to spend more on debt service than on internal security, it also plans to spend more on debt service than its agricultural ministry. More will be spent on debt service than the housing and urban ministry.
What’s the Value of the Debt Service Figure?
In the 2024 budget, Kaduna state plans N750 million to renovate 55 schools, meaning that the N25 billion on debt servicing can renovate 1833 schools.
The state also planned to renovate ten boreholes for N40 million, meaning that the N25 billion for debt servicing can renovate 6250 boreholes in the state.
The state also planned to spend N3 billion for a 300-beds specialist hospital project, meaning that the N25 billion can build eight of such facilities.
The debt servicing figure can cover 32.8% of the state’s personnel expenditure (N76 billion) for 2024.
SERAP earlier gave Kaduna state and other states an ultimatum of seven days to account for details of loans obtained by states.
