Eight states are to pay a combined N424.28bn in debt service and to borrow N1.21tn over the next two years, with financial commitments slated for 2025 and 2026,
The PUNCH reports. According to the states’ medium-term fiscal frameworks, the eight states in review – Abia, Adamawa, Bauchi, Borno, Kebbi, Osun, Benue, and Kano – are projected to experience varying debt service and borrowing trends.
The analysis indicates differences between 2025 and 2026, with some states facing substantial increases in debt service while others focus on reducing borrowing.
An MTEF is a multi-year public expenditure planning exercise that is used to set out the future budget requirements for existing services and to assess the resource implications of future policy changes and any new programmes.
An analysis of the MTEF document of the states shows that Abia’s public debt service is set to rise by 2.49 per cent, from N23.29bn in 2025 to N23.87bn in 2026. The state’s borrowing is also expected to increase by 2.49 per cent, from N364.11bn in 2025 to N373.21bn in 2026.
