Kogi Budgets ₦2bn for Government House Projects as Debt Servicing Gulps Over 80% of IGR
By Enemona Samuel Endurance
The Bureau News
Kogi State Government has earmarked over ₦2 billion for projects within the Government House in its proposed 2026 fiscal year budget, despite mounting concerns over the state’s rising debt burden.
A review of the 2026 draft budget document by The Bureau News shows that the government plans to spend ₦1.015 billion on the remodelling of the Government House structure.
This is in addition to another ₦1 billion allocated for Government House minor capital works, which are to be executed through direct labour.
₦500m Budgeted for Lawmakers’ Residential Apartments
The budget document further indicates that the state plans to spend ₦500 million on the construction of residential apartments for honourable members of the state House of Assembly and the head of legislative services.
The project is described as being on an “owner-occupier basis”, suggesting that the beneficiaries would take ownership of the properties, even though the funding is sourced from public funds.
These allocations have drawn attention given the state’s fragile fiscal position and growing debt obligations.
Debt Servicing to Consume Over 80% of IGR
Earlier findings from the Kogi State Medium-Term Expenditure Framework (MTEF) reveal that the state is projected to spend more than 80 percent of its Internally Generated Revenue (IGR) on debt servicing between 2025 and 2027.
For 2025, the state expects to generate ₦35.1 billion as IGR, while ₦27.9 billion—about 79.4 percent—is projected to go into debt servicing.
In 2026, IGR is again projected at ₦35.1 billion, with ₦28.2 billion, representing 80.4 percent, earmarked for debt payments.
By 2027, projected revenue remains at ₦35.1 billion, while debt servicing is expected to rise to ₦28.5 billion, translating to 81.1 percent of the state’s IGR.
State Rated “Vulnerable” to Debt Shocks
The MTEF document described Kogi State’s debt profile as “vulnerable”, warning that the state’s ability to meet its debt obligations could weaken unexpectedly.
“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 the forecast period,” the document stated.
It cited potential factors such as lower-than-expected revenue, rising expenditure, or unexpected increases in liabilities.
The document also noted that the state’s revenue base remains weak and heavily dependent on federal allocations.
“About 80 percent of Kogi’s revenue is derived from federal allocations, while internally generated revenue contributes less than 20 percent—below the national average,” the report added.
Debt Spending Overshadows Social Sectors
A separate review of the 2025 budget performance report showed that between January and June 2025 alone, the state spent ₦28.1 billion on debt servicing.
During the same period, combined expenditure for the Ministry of Works, the Road Maintenance Agency, and the State Fire Service stood at just ₦17.2 billion.
The Ministry of Water Resources received ₦1.4 billion, while the Ministry of Education spent ₦20.3 billion and the Ministry of Health received ₦12.3 billion.
Despite the heavy debt burden, earlier budget reviews showed that the state allocated ₦7 billion in the 2025 fiscal year for the purchase of 60 official vehicles for ministries and departments.
These spending patterns have continued to raise questions about fiscal discipline and prioritisation in the management of public resources in Kogi State.
