Only Kaduna, Kwara stay afloat as wage bills drown Northern IGR
A 2026 financial analysis reveals that most Northern Nigerian states are struggling to cover personnel costs with their internally generated revenue (IGR). Only Kaduna and Kwara states reported a surplus, while the majority of the region remains heavily dependent on federal allocations to meet wage obligations.
Why it matters
The fiscal instability of these states highlights the broader economic challenges facing Nigeria's regional governments and the ongoing debate over fiscal federalism.
Only Kaduna, Kwara stay afloat as wage bills drown Northern IGR - Businessday NG
Only Kaduna, Kwara stay afloat as wage bills drown Northern IGR
Public sector wage bills are overwhelming Internally Generated Revenue (IGR) across Northern Nigeria, leaving almost the entire region fiscally vulnerable and dependent on federal allocations. According to BudgIT’s 2026 analysis of the state finances report, Kaduna and Kwara were the only northern states among those covered by the study that generated enough revenue to cover their personnel costs in 2025, while every other state recorded staggering deficits. Kaduna generated N86.72 billion in IGR against personnel expenditure of N77.63 billion, leaving a positive balance of N9.09 billion. Kwara generated N85.21 billion compared with N65.22 billion spent on personnel, representing a surplus of N19.99 billion. The performance of other northern states was considerably weaker.
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