Katsina’s Operating Expenditure Rises by Nearly 70% as States Face Sharp Increases in Recurrent Costs — BudgIT Report
Katsina Times
Katsina State recorded a 69.96 percent rise in its year-on-year operating expenditure and loan repayment obligations, according to new figures from BudgIT’s State of States Report 2025. The state’s spending rose from N119.89 billion in 2023 to N203.78 billion in 2024, placing it in the mid-upper band among the 36 states.
The report shows that while Katsina’s fiscal expansion is significant, the state remains far below the extreme spikes recorded by some states. Cross River posted the highest growth at 339.86 percent, followed by Benue (173.31 percent), Ekiti (162.09 percent), and Kogi (109.11 percent). These states more than doubled or tripled their expenditure obligations within a single fiscal year.
At the lower end of the scale, Ebonyi recorded a 14.78 percent increase, Delta had 12.63 percent, Anambra posted 9.07 percent, while Bayelsa was the only state to record a decline at –0.74 percent.
Fiscal analysts note that Katsina’s expenditure trajectory reflects:
Higher personnel and overhead costs
Rising loan servicing commitments
Inflationary impacts on procurement and administrative operations
A growing scope of government programmes
Despite the increase, Katsina’s situation is viewed as moderate but tightening, compared with the runaway expenditure growth in several states.
More than 20 states recorded expenditure growth above 50 percent, signalling broad-based fiscal pressure across the federation. The nationwide rise has been linked to persistent inflation, wage adjustments, increased overheads, and debt repayment responsibilities.
Experts warn that unchecked expansion of recurrent spending could:
Reduce states’ capacity for capital investment
Deepen dependence on FAAC allocations
Increase borrowing for recurrent obligations
Heighten the long-term debt burden
The report suggests that states, including Katsina, must strengthen fiscal discipline, improve efficiency in public spending, and adopt more strategic borrowing frameworks to safeguard future budget stability.
