Some Northern States Struggle to Cover Salaries with IGR in 2025

Kano, Jigawa, Katsina, Zamfara Unable to Pay Salaries Solely from IGR in 2025.

A review of the 2025 budgets of select Northwestern states has revealed that Kano, Zamfara, Jigawa, and Katsina would be unable to fully cover personnel costs if they were to rely solely on their internally generated revenue (IGR). Despite high personnel expenses, only 18.62% of Jigawa’s total expenditures for 2025 are expected to be funded through IGR.

According to budget documents reviewed by SolaceBase:

Kano State projected an IGR of ₦85.8 billion, but its personnel expenditure stands at ₦150.9 billion.
Zamfara State expects to generate ₦32.8 billion internally, while personnel costs are pegged at ₦58.3 billion.
Jigawa State anticipates ₦83.5 billion in IGR but has a personnel budget of ₦90.7 billion.
Katsina State projected ₦64.4 billion in IGR, while its personnel costs are estimated at ₦67.1 billion. Notably, over 79% of Katsina’s IGR in the first half of 2024 was spent on debt servicing and refreshments.

This analysis indicates that these states would struggle to pay salaries in full if they depended only on IGR.

Kaduna: A Different Case

In contrast, Kaduna State expects an IGR of ₦112 billion, exceeding its personnel expenditure of ₦83.9 billion. If the state meets its revenue target, it could fully fund salary payments for 2025.

Ambitious Budgets, Low Revenue Performance

Despite ambitious revenue targets, past budget performances suggest a significant shortfall in actual collections:

Kano State set an IGR target of ₦63 billion for 2024 but managed to collect only ₦28.9 billion (45%) between January and September.
Katsina State projected ₦44 billion but earned only ₦29.9 billion in the same period.
Zamfara State targeted ₦32.7 billion, yet between January and October 2024, it collected only ₦18.4 billion.

Concerns Over States’ Financial Capacity

The financial struggles of these states have raised concerns about their ability to meet salary obligations, let alone fund development projects. Experts warn that the persistent revenue shortfall could worsen unemployment and hinder job creation.

Need for Revenue Reform

Economic analysts emphasize the need for states to diversify revenue sources, cut waste, and enhance transparency to strengthen their financial standing.

According to data from the National Bureau of Statistics (NBS):

Kano State has an unemployment rate of 25.4% and underemployment at 31.2%.
Katsina State reports 25.3% unemployment and 23.5% underemployment.
Sokoto State has an unemployment rate of 14.5% and underemployment at 19.2%.