Kaduna — In a significant demonstration of fiscal discipline and administrative transparency, the Kaduna State Government has announced the successful liquidation of over ₦90 billion in debt inherited from the previous administration. Governor Uba Sani revealed this milestone while providing a comprehensive update on the state’s financial health, marking a pivotal moment in his government’s efforts to stabilize the economy of one of Nigeria’s most indebted sub-national entities.
Speaking during a high-level briefing on the state’s progress since he assumed office in May 2023, Governor Sani highlighted that this substantial repayment was achieved through a rigorous "lean government" strategy. Most notably, the Governor emphasized that the ₦90 billion reduction in liabilities was accomplished without the state government resorting to any fresh domestic or foreign borrowing to fund its operations, infrastructure projects, or social intervention programs.
When the current administration took the reins of power nearly three years ago, it was met with a daunting financial profile that threatened to grind governance to a halt. The inherited obligations included a staggering $587 million in external debt and approximately ₦85 billion in domestic liabilities. Beyond the liquid cash debt, the state also inherited a portfolio of 115 uncompleted contracts from the former administration led by Nasir El-Rufai.
These combined obligations resulted in a monthly debt servicing bill of approximately ₦6.7 billion. This massive financial burden placed Kaduna as the second most indebted state in Nigeria, trailing only behind Lagos State. The high cost of servicing these debts meant that a significant portion of the state’s statutory allocation was being diverted toward creditors rather than essential public services like healthcare, education, and rural development.
Governor Sani emphasized that the decision to avoid new borrowing was a deliberate and strategic policy rooted in a realistic assessment of the state’s fiscal capacity. He noted that while borrowing is a standard tool for development, the sheer volume of inherited debt meant that further loans would have been unsustainable and potentially catastrophic for the state’s future.
"In the last 3 years, we have been able to pay over ₦90 Billion of the debt we inherited, and since we came into government, we have not taken any new loans," Governor Sani stated, reinforcing his commitment to financial prudence. "Since we came into government, we have not taken any new loan because we believe we do not have fiscal strength to borrow any money. It would be irresponsible to continue a cycle of debt when the current servicing obligations are already so high."
The Governor’s approach has been characterized by a shift toward internally generated revenue (IGR) optimization and the prioritization of human capital development over "brick-and-mortar" projects that require massive capital outlays. By focusing on completing existing projects rather than initiating a plethora of new ones, the administration has managed to reduce waste and ensure that taxpayers receive value for money already committed in previous years.
Despite the self-imposed moratorium on new loans, the Kaduna State Government has not stalled its developmental agenda. Instead, the administration has focused on creating a "business-friendly" environment to attract private sector investment. This strategy is aimed at boosting the local economy and creating jobs without increasing the public debt profile. Governor Sani noted that the state continues to receive strong investor commitments in sectors such as agriculture, solid minerals, and digital technology, further validating the administration’s "debt-free" growth model.
The Governor’s disclosure has sparked a conversation among financial analysts regarding the sustainability of sub-national debt in Nigeria. Many have praised the Kaduna State model as a rare example of a government choosing long-term stability over short-term political optics. By liquidating ₦90 billion in less than three years, the administration has significantly improved Kaduna's creditworthiness and freed up billions of naira that can now be channeled back into the state’s budget for critical infrastructure.
However, the path to this recovery has required tough choices. The Governor acknowledged that the state has had to tighten its belt, reducing the cost of running the government and eliminating unnecessary expenditures. This "fiscal surgical" approach was necessary to address the 115 uncompleted contracts, many of which were at risk of abandonment. By paying off contractors and managing liabilities, the state has been able to resume work on several key roads and public buildings that had been stalled for years.
Reiterating his stance on the state’s financial management, Governor Sani assured the people of Kaduna that the era of reckless borrowing is over. He stated that any future consideration for loans would only occur if and when the state’s fiscal strength improves significantly, and even then, such loans would be strictly tied to self-liquidating projects that provide a direct economic return.
As the administration looks toward the final stretch of its first term, the focus remains on maintaining this trajectory of debt reduction while expanding the state's revenue base. The successful repayment of ₦90 billion serves as a testament to the fact that with political will and disciplined management, it is possible to navigate even the most challenging financial waters without mortgaging the future of the next generation.
For the residents of Kaduna, the impact of this fiscal turnaround is starting to be felt in the consistent payment of salaries, the completion of inherited township roads, and the expansion of rural primary healthcare centers. The Governor’s message is clear: Kaduna is no longer just a "debtor state," but a state in the process of reclaiming its financial independence and economic sovereignty.
