A review of the Kogi State draft budget for the 2026 fiscal year has shown that the state government plans to spend over ₦2 billion on projects within the Government House, despite mounting concerns over its debt profile and weak revenue base.
Findings revealed that the state budgeted a total of ₦1.015 billion for the remodelling of the Government House structure, while an additional ₦1 billion was set aside for “minor capital works” within the Government House, to be executed through direct labour.
Further scrutiny of the draft budget showed that the administration of Governor Usman Ododo also earmarked ₦500m for the construction of residential apartments for honourable members of the state House of Assembly and the head of legislative services.
The budget document, shared online by SaharaReporters, described the project as being on an “owner-occupier basis,” an arrangement that suggests that the lawmakers would eventually own the houses built with public funds.
Luxury Spending Amid Debt Burden
The planned expenditures have triggered concerns, especially against the backdrop of the state’s growing debt servicing obligations.
Earlier, a review of the Kogi State Medium-Term Expenditure Framework document for 2025–2027 showed that more than 80 per cent of the state’s Internally Generated Revenue would be committed to debt servicing over the period.
According to the MTEF, Kogi State is projected to generate ₦35.1bn as IGR in 2025, while ₦27.9bn is expected to be spent on public debt service within the same year. This represents about 79.4 per cent of the state’s IGR.
In 2026, the document projected another ₦35.1bn in revenue, with ₦28.2bn earmarked for debt servicing — amounting to 80.4 per cent of the expected IGR.
For 2027, expected revenue was also put at ₦35.1bn, while public debt service was projected to rise to ₦28.5bn, meaning that 81.1 per cent of the state’s revenue would go into servicing debts.
The MTEF document warned that the state’s financial position remains fragile.
“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),” the document stated.
It added, “This may be due to lower-than-expected revenue, higher-than-expected expenditure, or an unexpected rise in liabilities or debt-service requirements.”
The document further noted that the state’s revenue robustness was weak, largely due to its socio-economic challenges and dependence on federal transfers.
“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,” it said.
Concerns were also raised about the state’s heavy dependence on federally allocated revenue.
“About 80 per cent of Kogi’s revenue is made of federal allocated revenue, i.e. VAT and statutory transfers… The proportion of internally generated revenue of total operating revenue is less than 20 per cent, below the Nigerian states’ average,” the document noted.
Meanwhile, a review of the Kogi State budget performance report for the first half of 2025 showed that ₦28.1bn was spent on debt servicing between January and June.
This figure exceeded spending on several critical sectors. During the same period, the Ministry of Works and Planning, including the Ministry of Works, the Road Maintenance Agency and the state fire service, recorded a combined expenditure of ₦17.2bn.
The Ministry of Water Resources received just ₦1.4bn, while the Ministry of Education spent ₦20.3bn. The Ministry of Health recorded an expenditure of ₦12.3bn within the six-month period.
Despite the growing debt burden, a previous review of the 2025 budget showed that the state allocated ₦7bn for the purchase of 60 vehicles for ministries, departments and agencies.
The development has fuelled concerns among residents about state governments’ commitment to prudence and responsible management of public resources amid dwindling revenues and rising debt obligations.