Kaduna to Service Inherited Debt Through 2062 Amid Massive Infrastructure Spend - Ahmed Monrovia

KADUNA – The Kaduna State Government has allocated the sum of N80.2 billion in its 2026 budget proposal exclusively for servicing debts inherited from previous administrations, even as it reaffirms a strict policy of not contracting new loans.

The State Commissioner for Planning and Budget Commission, Mukhtar Ahmed Monrovia, stated this during a Special Town Hall Meeting for the public presentation of the N985.9 billion 2026 budget on Friday.

Monrovia revealed that the hefty debt burden, which includes obligations stretching until 2062, has posed significant financial constraints, making prioritising repayment a necessity to avert "catastrophic" penalties.

“The major problem has been the issue of debt. It is only fair to announce clearly that yes, these debts were inherited,” Monrovia stated. “If we fail to service them as scheduled, the penalties will be catastrophic.”

He emphatically defended the fiscal discipline of the current administration, declaring, “Let it be known that in the two years he has been governor, not a single kobo has been borrowed. We are paying both the foreign debts and the local ones.”

A N985.9 Billion Spending Plan

The debt service allocation is part of a larger N985.9 billion multi-year budget for 2026, which represents a 24.73 per cent increase from the 2025 budget.

Dubbed the “Budget of Consolidating Rural Transformation for Inclusive Development,” the spending plan heavily prioritises capital projects, with N699.7 billion (71 per cent) allocated for them. Recurrent expenditure is set at N286.2 billion (29 per cent).

The government plans to fund the budget through an opening balance of N150 billion, projected recurrent revenue of N584.3 billion, and other receipts totalling N251.6 billion. A significant portion of the revenue is expected to come from a projected N472.1 billion share from the Federation Account Allocation Committee (FAAC).

Era of Transparency in Contract Payments

Commissioner Monrovia also used the forum to highlight ongoing reforms in public finance management, assuring contractors that the era of delayed payments is over.

“Those days when you needed to chase files or lobby to get paid are gone,” he asserted. “If you have a contract, once it is signed, I will sign your payment immediately. This is a new era of transparency.”

He stated that the government's approach, which combines aggressive debt servicing without new borrowing with a transparent payment system, reflects its resolve to strengthen fiscal responsibility and restore public trust in the state’s financial management.