A new report by the Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that Kaduna State spent ₦51.2 billion—representing 32 percent of its ₦159.7 billion gross federal allocations in 2024—on debt servicing alone.
The report, titled “Beyond Federal Allocations: The Cost of Borrowings and Debt Servicing at State Level in Nigeria”, provides fresh, evidence-based insights into how heavy debt obligations are constraining the ability of many states to invest in essential services, local infrastructure, and poverty reduction programmes.
Following Kaduna on the high-debt list is Ogun State, which committed 27 percent (₦33 billion from ₦123 billion) of its allocations to debt servicing, Bauchi with 26 percent (₦37 billion from ₦142 billion), and Cross River with 24 percent (₦28 billion from ₦119 billion).
In contrast, states with the lowest debt burdens include Borno with just 2.63 percent, Jigawa at 2.74 percent, Benue at 3.58 percent, and Nasarawa at 3.82 percent. NEITI noted that these low-debt states, along with Kebbi (4.06 percent), Bayelsa (4.46 percent), and Anambra (4.54 percent), have preserved over 95 percent of their gross allocations for direct development spending through prudent borrowing and sound fiscal management.
The findings underscore a growing fiscal divide between states burdened by debt repayments and those maintaining healthy fiscal space to drive development priorities.
