KDSG Says It Has Not Initiated Any New Borrowing
By: Femi Mustapha
Kaduna State Government has said it has not initiated any new borrowing endeavors and that, as of the present date, no new loans have been borrowed.
The State Commissioner of Budget and Planning Commission Hon. Murktar Ahmed Monrovia disclosed during an engagement with the Civil Society Organizations /Private sector on the 2025- 2027 draft Medium-Term Expenditure Framework (MTEF)as its commitment to Open Government Practices( OGP) yesterday
Hon.Monrovia said the present debt burden on the State is the one negotiated and collected by the previous administration.
The PBC Commissioner, however, disclosed that the state is working towards debt restructuring with its creditors.
Speaking on the MTEF, the Commissioner explained that the Medium-Term Expenditure Framework (MTEF) is a tool for multi-year fiscal planning and budget formulation to enable the Government to set fiscal targets and allocate resources to strategic priorities.
He added that the MTEF sets out three-year spending plans for the national and state governments.
” It aims to ensure that budgets reflect the Government’s social and economic priorities and give substance to the Government’s reconstruction and development commitments. The MTEF is one of the most important reforms of Nigeria’s Public Financial Management (PFM).
“The Kaduna State Government commenced the preparation of the MTEF in 2014. The first MTEF covered the period of 2016-2018. The MTEF has been rolled for each of the subsequent years.”
On the 2024 Half-life Budget Performance, Hon.Monrovia said as of Q2 2024 Actual Total Revenue for Kaduna State amounted to the sum of N171,744,427,099, while the actual Total Expenditure amounted to N164,618,801,550.97, representing half year budget performances of 37.48% and 35.92% % against 2024 Original Budget, respectively.
“It is important to note that MTEF preparation for the year 2025-2027 is quite challenging given the present global uncertainties on macroeconomic assumptions across the globe and the ongoing economic reforms by the current administration. This requires lots of research and brainstorming with relevant stakeholders to arrive at realistic revenue projections.
However, despite this challenge, the Commission has produced a draft undergoing high-level review before finalization.
The Commissioner that the total projected revenue for 2025 is 272,861,642,199, for 2026 is 360,841,640,693, for 2027 is 418,544,168,520,while the total recurrent expenditure for 2025 is 219,623,285,895, for 2026 it is 231,765,875,876, for 2027 is 244,009,876,543.
Similarly, he said the project capital receipts and expenditure for 2025 is 542,485,940,832, for 2026 is 622,488,637,661, and for 2027 is N666,191,165,489.
In his remarks, the Citizen Co-Chair open Budget of OGP, Mr. Seth Luke said the Medium-Term Expenditure Framework (MTEF) document raised significant concerns about the sustainability and accuracy of the budget projections.
“High Debt Servicing Costs: ₦70 billion is projected to be used for debt servicing in 2025, which represents 13% of the total budget and 47% of the statutory allocation. This high percentage indicates that a substantial portion of the government’s revenue is being diverted to service debt, leaving less available for other critical expenditures. It also underscores the challenge of managing a growing debt burden.
“The MTEF does not account for the new minimum wage agreed upon by the federal government in the personnel expenditure. This omission suggests that when this is put into consideration, the budget will increase beyond the recommended ₦547 billion as the total budget for the state.” He stressed.
