The Kaduna State Government has made a firm declaration that it will not take any new loans to finance its operations or development projects in the 2026 fiscal year. This clarification comes from the State Commissioner for Planning and Budget, Mukhtar Ahmed Monrovia.
Budget Financed Without Borrowing
In a statement released by the Chief Press Secretary, Malam Ibraheem Musa, Commissioner Monrovia explained the funding strategy for the state's 2026 budget. He stated that the N985.9 billion budget will be entirely financed through the state's statutory allocations from the federation account, internally generated revenue (IGR), and grants.
The Commissioner addressed what he called a misunderstanding in media reports regarding loan drawdowns. He clarified that while the state is servicing and drawing down from loans obtained by previous administrations, Governor Uba Sani's government has not contracted any new loans since assuming office.
"Terminating the loan agreements prematurely will lead to penalties higher than the cost of interest repayments on servicing the loans," Monrovia explained, justifying the continued servicing of inherited debt.
Breakdown of the N985.9 Billion 'Consolidation' Budget
Governor Uba Sani had earlier signed the 2026 Appropriation Bill, titled "Budget of Consolidation Of Transformation For Inclusive Development," into law on December 22, 2025. The budget commenced operation on January 1, 2026, aligning the state's fiscal year with the calendar year—a move commended by the Commissioner.
The budget prioritizes capital projects, with a significant N698.9 billion (70.9%) allocated to capital expenditure. This focus is aimed at infrastructure development, economic expansion, and improved service delivery. Recurrent expenditure is set at N287 billion (29.1%) to ensure efficient government operations.
Key sectoral allocations highlighted by the Governor include:
- Education: 25% of the total budget, reflecting a belief in knowledge as a tool to break poverty.
- Infrastructure and Rural Transformation: 25%, aimed at opening up communities and stimulating economic activity.
- Health: 15%, to build a healthy population as a foundation for productivity.
- Agriculture and Food Security: 11.65%, to empower farmers and strengthen the local economy.
Grassroots Development and Fiscal Prudence
A notable feature of the budget is the allocation of N100 million to every ward in Kaduna State for community-driven projects. This initiative is designed to allow residents to determine their own priorities and drive development from the grassroots level.
Commissioner Monrovia praised the administration's fiscal discipline, noting that despite immense financial pressures, it has continued to service both the principal and accrued interest on loans negotiated by the previous government.
"The Malam Uba Sani Government will continue to serve the good people of Kaduna State with prudence and will be inclusive in providing development projects. No amount of lies and misleading information will distract the government from achieving this goal," he promised.
This announcement positions the Kaduna State Government as one focused on sustainable financing, leveraging its own revenue sources while managing inherited debt obligations, as it pushes forward with its development agenda.
