Secrets Reporters
The 2024 audit report of Adamawa State has revealed that the state expended ₦31.42 billion on debt servicing within the fiscal year, representing a significant share of its recurrent expenditure under the administration of Governor Ahmadu Umaru Fintiri.
The report, compiled by the State Auditor-General, Usman Ahmed, and obtained by SecretsReporters, showed that debt-related obligations consumed a substantial portion of the state’s financial resources in 2024.
According to the audit, public debt charges totaled ₦31.42 billion, accounting for 24.37 percent of Adamawa State’s total recurrent expenditure for the year. Out of the ₦32.99 billion earmarked in the 2024 budget for debt servicing, the actual expenditure of ₦31.42 billion represented 95.24 percent performance against the approved provision.
The 2024 fiscal plan, signed into law by Governor Fintiri as the “Budget of Re-Engineering,” had an approved size of ₦225.89 billion. However, the audit noted that the state’s total actual revenue for the year rose to ₦262.21 billion, exceeding initial budget expectations.
Despite the improved revenue performance, the audit highlighted that debt servicing remained a dominant component of recurrent spending. It observed that nearly one-quarter of all recurrent resources were directed toward interest payments and loan repayments, underscoring the growing weight of debt obligations on the state’s fiscal structure.
The Auditor-General’s statement warned that the current expenditure pattern leaves limited fiscal space for discretionary operations and development-focused investments. It further noted that the structure of recurrent spending in 2024 was heavily skewed toward personnel costs and debt-related commitments.
“The composition of recurrent expenditure in 2024 reveals a heavy tilt towards personnel and debt-related obligations, with limited room for discretionary operational spending,” the report stated.
It added that the trend calls for “cautious debt management and sustainable borrowing strategies” to prevent debt servicing from crowding out critical public services and infrastructure investment.
The audit also recommended long-term fiscal reforms aimed at optimizing the wage bill and restructuring the state’s debt profile in order to create more room for development-oriented spending.
The findings come amid broader national concerns over rising subnational debt servicing obligations and their impact on governance, service delivery, and capital project execution across several Nigerian states.