Zamfara’s 2025 Budget Shock: N546 Billion Expenditure with Only N32 Billion in Internal Revenue
Zamfara State’s proposed 2025 budget has raised serious concerns, revealing a massive gap between its projected expenditure and internal revenue generation. The state plans to spend N546 billion in the upcoming fiscal year, but it expects to generate only N32 billion internally, a mere 5.8% of the budgeted figure. This discrepancy underscores the state’s heavy reliance on external funding to meet its financial obligations.
Governor Dauda Lawal has officially signed the N546 billion budget into law, with priorities focused on key sectors such as security, education, health, infrastructure, and agriculture. However, the state’s internal revenue generation remains a major challenge. While Zamfara anticipates N223 billion from federally distributed revenue (FAAC), concerns over the sustainability of the state’s finances persist.
The reliance on external sources becomes even clearer when considering the state’s salary obligations. With a projected personnel expenditure of N58.3 billion in 2025, Zamfara would only be able to pay 55% of its workers’ salaries using its internally generated revenue. This paints a grim picture of the state’s ability to meet its financial commitments without external assistance.
Even more troubling is the state’s capital expenditure plan. Should it rely solely on internally generated revenue for funding, only 8.1% of the budget’s capital expenditure would be covered. Between January and September 2024, Zamfara generated just N18 billion internally, highlighting a significant shortfall in revenue generation.
As of June 2024, Zamfara’s domestic debt stands at N62.5 billion, with an additional $27 million in external debt. This mounting debt load, coupled with high dependence on federal allocations and loans, has raised alarms about the state’s financial stability. Critics argue that this pattern of relying on federally allocated revenue and loans for budget funding only increases debt servicing costs and hampers the state’s ability to foster economic development effectively.
