With an estimated internally generated revenue (IGR) of N112 billion, Kaduna’s debt servicing will consume 63.2% of its projected IGR.

A review of the 2025 approved budget documents for 12 Nigerian states reveals that they will collectively spend N310.8 billion on debt servicing in the fiscal year.

The analysis shows that Jigawa State has allocated N4.8 billion for debt servicing, while Kaduna State has earmarked a substantial N70.8 billion for the same purpose.

With an estimated internally generated revenue (IGR) of N112 billion, Kaduna’s debt servicing will consume 63.2% of its projected IGR.

Similarly, Kano State plans to spend N12.1 billion on debt servicing, while Kebbi State has budgeted N11.3 billion for the same expenditure. Zamfara budget estimate for debt servicing stands at N15.1 billion.

In Nigeria’s southwestern region, Ondo State has allocated N22 billion for debt servicing. With an expected IGR of N43.3 billion, this means 51.1% of the state's internally generated funds will go toward repaying debt.

Osun State plans to spend N29 billion on debt servicing, while Nasarawa State has budgeted N6.4 billion. Meanwhile, Plateau State is expected to spend N33.4 billion on debt repayments.

Other states with significant debt servicing allocations include Bauchi State, which has earmarked N29.8 billion, Abia State with N23.2 billion, and Bayelsa State, which leads the list with a debt servicing bill of N52.9 billion for 2025.

The high cost of debt servicing has raised concerns about its impact on states' ability to fund critical infrastructure and public services. Experts argue that debt repayment obligations often constrain state governments, limiting their ability to invest in essential sectors such as education, healthcare, and water supply.

A review of debt servicing trends from January to September 2024 highlights the financial burden on states. During this period, Osun State spent N15.3 billion on debt servicing, while Abia State allocated N11.2 billion to servicing its debts.

Ondo State’s debt repayments during the same period amounted to N64.7 billion, exceeding its 2025 budgeted allocation, while Jigawa State spent N5 billion.

Many Nigerian states continue to struggle with issues such as lack of access to clean drinking water, poor sanitary conditions, inadequate educational facilities, and failing healthcare systems. Critics argue that the substantial sums allocated to debt servicing further hinder states' ability to address these pressing developmental needs.

Despite concerns, debt servicing remains a perennial challenge, with many states dependent on loans to finance recurrent and capital expenditures.

Experts warn that unless states improve revenue generation and adopt better debt management strategies, the cycle of high debt servicing costs will continue to impede socio-economic development.