The data from the Debt Management Office (DMO), has revealed that seven Northwestern states of Nigeria are collectively owing a staggering sum of N254.9 billion in domestic debt as of the year 2024.
According to the latest DMO data, Kano State emerges as the most indebted in the region, burdened with a domestic debt portfolio amounting to N61.9 billion. Close behind, Zamfara State shoulders a substantial debt of N60.6 billion, while Sokoto State follows with N58.8 billion.
In contrast, Jigawa State stands as the least indebted among its Northwestern counterparts, reporting a debt figure of N1.2 billion.
Meanwhile, Kaduna State’s debt amounts to N26.6 billion, Katsina owes N30.5 billion, and Kebbi State carries a debt load of N15.3 billion.
The implications of these debts are profound, highlighting concerns over the states’ heavy reliance on loans amidst challenging revenue conditions.
This reliance has led to significant expenditures on debt servicing, diverting resources that could otherwise be allocated to critical infrastructure and social welfare programs.
Further analysis reveals that Kano State, with a population of approximately 15.4 million people, translates its debt burden to N4,019 per capita locally as of September 2024
Zamfara State, with over 5.833 million residents, faces a per capita debt of N10,389, while Sokoto State’s per capita debt stands at N9,333 for its population of 6.3 million.
The impact on socio-economic indicators is stark, as evidenced by the substantial debt servicing costs incurred by these states.
For instance, in the first half of 2024, Katsina State’s internally generated revenue amounted to N10.5 billion.
However, the state expended N12.7 billion solely on servicing its debt during the same period.
Compounding these financial challenges are alarming unemployment rates across the region.
According to data from the National Bureau of Statistics, Kaduna State reported an unemployment rate of 44.3%, while Kogi, Niger, and Jigawa states followed closely with rates ranging from 38% to 39%.
This dire economic landscape underscores the pressing need for sustainable fiscal policies and strategies to alleviate poverty and spur economic growth.
As these states navigate their financial obligations, the spotlight remains on their capacity to effectively manage debts while striving to improve socio-economic conditions for their citizens.
The path forward hinges on prudent fiscal management and targeted investments that prioritize sustainable development and inclusive growth.
The disclosure of these debt figures serves as a stark reminder of the economic challenges facing Nigeria’s Northwestern states, prompting calls for robust fiscal reforms and strategic interventions to secure a stable and prosperous future for all residents.
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