Kaduna State Government has earmarked N80.2 billion in its proposed 2026 budget exclusively for the settlement of outstanding foreign and domestic debts inherited from previous administrations, according to Mukhtar Ahmed Monrovia, Commissioner for Planning and Budget.
Speaking on Friday at a special town hall meeting on the public presentation of the draft 2026 budget in Kaduna, Monrovia said Governor Uba Sani administration has maintained a disciplined approach to public finance, noting that it has not contracted any new loans since assuming office.
He said the government has instead focused on strengthening resource mobilisation to meet its obligations, adding that the inherited debt burden continues to exert substantial pressure on the state’s finances.
Monrovia emphasised that prioritising debt repayment in the 2026 fiscal plan is crucial to avoiding penalties and safeguarding the state’s long-term fiscal stability.
He said, “the major problem has been the issue of debt. It is only fair to announce clearly that yes, these debts were inherited.
“If we fail to service them as scheduled, the penalties will be catastrophic.”
He emphasised that the state has already begun offsetting the liabilities, adding that the repayment schedule may stretch until 2062, especially for the foreign components.
He added that despite the heavy debt burden, Governor Uba Sani’s administration has demonstrated financial discipline, insisting that the government has not borrowed a single kobo in the two years since assuming office.
“We are paying both the foreign debts and the local ones. And let it be known that in the two years he has been governor, not a single kobo has been borrowed,” he emphasised.
Monrovia also used the forum to highlight ongoing reforms in contract processing and public finance management, noting that the era when contractors depended on undue delays or political manoeuvring to receive payments is over.
“Those days when you needed to chase files or lobby to get paid are gone.
“If you have a contract, once it is signed, I will sign your payment immediately. This is a new era of transparency,” he stated.
Read also: NDLEA destroys 52,481kg of illicit drugs in Kaduna
The commissioner said the government’s approach reflects its resolve to strengthen fiscal responsibility, sustain transparency, and restore public trust in the state’s financial management system, even while navigating long-term debt obligations.
The state is planning to spend N985.9 billion, representing a 24.73% increase from the 2025 budget.
The spending plan allocates N286.2 billion for recurrent costs and N699.7 billion for capital projects, to be funded through an opening balance of N150 billion, projected recurrent revenue of N584.3 billion, and other receipts totalling N251.6 billion.
Notably, the government’s share of FAAC is expected to rise significantly to N472.1 billion.
