According to Nivo News, Kogi State has come under public scrutiny after its 2026 draft budget revealed plans to spend over ₦2 billion on the remodelling of the Government House and related projects, despite mounting concerns over the state’s rising debt and weak revenue base. The draft budget allocates ₦1.015 billion for extensive renovations of the Government House structure, alongside ₦1 billion for minor capital works to be executed through direct labour.....KINDLY READ THE FULL STORY HERE▶

In addition, the budget earmarks ₦500 million for the construction of residential apartments for members of the State House of Assembly and the head of legislative services. The project is described as being on an “owner-occupier basis,” implying that lawmakers would eventually take ownership of the houses built with public funds.

The planned expenditure has drawn criticism, particularly against the backdrop of Kogi’s growing debt servicing obligations. A review of the state’s Medium-Term Expenditure Framework for 2025–2027 indicates that more than 80 per cent of internally generated revenue (IGR) will be committed to debt servicing. The state is projected to generate ₦35.1 billion in IGR for both 2025 and 2026, with debt servicing expected to consume ₦27.9 billion and ₦28.2 billion respectively. By 2027, debt service is projected to rise to ₦28.5 billion, representing 81.1 per cent of projected revenue.

The MTEF warned that Kogi’s financial position remains fragile, with a “very high risk” that the state’s ability to meet debt obligations may be unexpectedly weakened due to lower-than-expected revenue, higher expenditures, or an unforeseen increase in liabilities. The framework also highlighted the state’s weak revenue robustness, largely driven by socio-economic challenges and heavy reliance on volatile federal allocations, including VAT and statutory transfers. Internally generated revenue accounts for less than 20 per cent of total operating revenue, significantly below the Nigerian states’ average.

A review of the first half of 2025 budget performance showed that ₦28.1 billion was spent on debt servicing between January and June, surpassing allocations to several critical sectors. Combined expenditure by the Ministry of Works and Planning, the Road Maintenance Agency, and the state fire service was ₦17.2 billion, while the Ministry of Water Resources received ₦1.4 billion, Education ₦20.3 billion, and Health ₦12.3 billion. Notably, the 2025 budget had also earmarked ₦7 billion for the purchase of 60 vehicles for ministries, departments, and agencies.

Residents and analysts have expressed concern over the state government’s spending priorities, questioning its commitment to fiscal prudence and responsible management of public resources amid dwindling revenues and mounting debt obligations.