Despite growing worries about its debt profile and inadequate income base, an examination of the Kogi State draft budget for the 2026 fiscal year revealed that the state government intends to spend more than ₦2 billion on projects within the Government House.
The results showed that the state allocated ₦1.015 billion for the renovation of the Government House building, and an extra ₦1 billion for “minor capital works” inside the Government House that would be carried out by direct labor.
A closer look at the draft budget revealed that Governor Usman Ododo’s government also set aside ₦500 million for the building of residential apartments for the head of legislative services and honorable members of the state House of Assembly.
The project is on a “owner-occupier basis,” which implies that the politicians would eventually own the homes constructed with public monies, according to the budget sheet that SaharaReporters posted online.
Luxurious Expenditures Despite Debt
Concerns have been raised by the expected spending, particularly in light of the state’s increasing debt servicing commitments.
According to an earlier analysis of the Kogi State Medium-Term Expenditure Framework paper for 2025–2027, debt servicing will account for more than 80% of the state’s internally generated revenue during that time.
The MTEF projects that Kogi State will produce ₦35.1 billion in IGR in 2025 and spend ₦27.9 billion on public debt payment. This amounts to roughly 79.4% of the state’s IGR.
The report predicted an additional ₦35.1 billion in revenue in 2026, of which ₦28.2 billion would go toward debt servicing, or 80.4% of the anticipated IGR.
forecast revenue for 2027 was also estimated to be ₦35.1 billion, while public debt service was forecast to increase to ₦28.5 billion, or 81.1% of the state’s total revenue.
The state’s financial situation is still precarious, according to the MTEF report.
According to the study, “Kogi’s ‘Vulnerable’ risk profile reflects a very high risk that the state’s ability to cover debt service with its operating balance may weaken unexpectedly over our forecast horizon (2024-2028).”
“This may be due to lower-than-expected revenue, higher-than-expected expenditure, or an unexpected rise in liabilities or debt-service requirements,” the statement continued.
The report also stated that the state’s reliance on federal payments and socioeconomic difficulties contributed to its poor revenue resilience.
According to the report, “Kogi’s revenue robustness is influenced by the state’s overall weak socio-economic profile by international standards and reliance on volatile transfers from the Federal Government.”
The state’s over reliance on funds provided by the federal government was another issue brought up.
“Federally provided revenue, including as VAT and statutory transfers, accounts for about 80% of Kogi’s revenue. Less than 20% of overall operational revenue is internally generated, which is less than the norm for Nigerian governments, according to the document.
According to an assessment of the Kogi State budget performance report for the first half of 2025, debt servicing cost ₦28.1 billion between January and June.
This amount was more than what was spent in a number of important areas. A total of ₦17.2 billion was spent over the same period by the Ministry of Works and Planning, which includes the State Fire Service, the Road Maintenance Agency, and the Ministry of Works.
While the Ministry of Education spent ₦20.3 billion, the Ministry of Water Resources only received ₦1.4 billion. Over the course of six months, the Ministry of Health reported spending ₦12.3 billion.
A prior analysis of the 2025 budget revealed that the state set aside ₦7 billion to buy 60 cars for ministries, departments, and organizations, despite the mounting debt load.
Residents’ worries about state governments’ dedication to caution and appropriate management of public resources in the face of declining income and growing debt obligations have been heightened by the development.
Hon. Dr. Philip “Okanga” Agbese, a transformative leader in Enone. Discover his achievements, community projects, and vision for 2027
