Latest news

How Gov Aliyu Is Funding 70% Capital Budget Without Loans


While many Nigerian states grapple with both local and foreign debt, the Sokoto State Government has said it is pursuing its aggressive development agenda without borrowing and is channelling the bulk of its resources into infrastructure and long-term investments.

The Commissioner for Information and Orientation, Alhaji Sambo Bello Danchadi, disclosed that the administration of Governor Ahmed Aliyu has adopted a strict fiscal model that prioritises capital expenditure while deliberately cutting down the cost of governance.

“At the heart of this strategy is the 2026 budget, where 70 per cent is allocated to capital projects and just 30 per cent to recurrent spending; a shift he described as both deliberate and unprecedented.

Members of the State Executive Council, and indeed the people of Sokoto State, are very proud because the Governor Aliyu administration will leave no debt burden at the end of its tenure, unlike a particular previous administration that accumulated debt without tangible results,” he said.

Nearly three years into office, the administration has combined this spending model with a firm no-borrowing policy, insisting that projects are executed strictly within available resources.

According to Danchadi, this has further been reinforced by tough financial controls, including a “no-variation” policy that locks contract sums from the outset, preventing inflation-driven cost increases and eliminating opportunities for abuse.

To further ensure efficiency, the government pays 30% upfront to contractors, allowing for rapid mobilisation and immediate economic stimulation.

The commissioner attributed this approach to the governor’s background as a financial expert, noting that disciplined cash management has made it possible to fund large-scale projects without resorting to loans.

He asserted that the impact of this model is already visible across the state. The government has constructed more than 350 roads, expanded healthcare facilities, rehabilitated schools, and installed solar-powered streetlights to improve security and nighttime economic activity. At the same time, it has maintained continuity by completing projects inherited from previous administrations.

Beyond infrastructure, the administration has also tackled inherited financial obligations, particularly over ₦14 billion in unpaid gratuities owed to retirees.

Through a structured payment plan of about ₦500 million monthly, the government says it hopes to effectively clear the backlog while preventing new debts from accumulating with the provision of another ₦300 million.

Danchadi explained that for the governor, financial discipline goes beyond cutting costs to verification processes, digital revenue collection systems, and strict adherence to due process before any project is approved.

This approach, he said, has ensured that every commitment is backed by available funds, reducing the risk of abandoned projects and legal disputes.

A key example of this caution is the reconstruction of the Sokoto Central Market. The government had initially planned to immediately reconstruct the market, which was gutted by fire during the administration of former governor Aminu Tambuwal, but had to pause and investigate the situation.

He disclosed that the government discovered the former governor had mortgaged the market. The administration eventually cleared the debt before awarding an ₦8.5 billion reconstruction contract, a move Danchadi said prevented future legal complications and secured full ownership.

He noted that while the administration operates with a strong sense of urgency to reverse years of underdevelopment, it has anchored its actions on the 9-Point Smart Agenda, which provides a framework for aligning short-term interventions with long-term goals.

The agenda has also undergone a midterm review to ensure policies remain relevant and sustainable.

“We recognised the depth of the developmental gaps and moved quickly, but without undermining planning or due process,” he said.

According to him, the result is a governance model that blends speed with structure, delivering visible projects, restoring public confidence, and maintaining fiscal stability without accumulating debt.

As the administration approaches its fourth year, officials argue that Sokoto’s experiment in cash-backed development and disciplined spending is not only addressing immediate infrastructure needs but also setting a precedent for sustainable, debt-free governance.



Tags :

Related Posts

Must Read

Popular Posts

The Battle for Africa

Rivals old and new are bracing themselves for another standoff on the African continent. By Vadim Samodurov The attack by Tuareg militants and al-Qaeda-affiliated JNIM group (Jama’a Nusrat ul-Islam wa al-Muslimin) against Mali’s military and Russia’s forces deployed in the country that happened on July 27, 2024 once again turned the spotlight on the activities...

I apologise for saying no heaven without tithe – Adeboye

The General Overseer of the Redeemed Christian Church of God, Pastor Enoch Adeboye, has apologised for saying that Christians who don’t pay tithe might not make it to heaven. Adeboye who had previously said that paying tithe was one of the prerequisites for going to heaven, apologised for the comment while addressing his congregation Thursday...

Protesters storm Rivers electoral commission, insist election must hold

Angry protesters on Friday stormed the office of the Rivers State Independent Electoral Commission, singing and chanting ‘Election must hold’. They defied the heavy rainfall spreading canopies, while singing and drumming, with one side of the road blocked. The protest came after the Rivers State governor stormed the RSIEC in the early hours of Friday...

Man who asked Tinubu to resign admitted in psychiatric hospital

The Adamawa State Police Command has disclosed that the 30-year-old Abdullahi Mohammed who climbed a 33 kv high tension electricity pole in Mayo-Belwa last Friday has been admitted at the Yola Psychiatric hospital for mental examination. The Police Public Relations Officer of the command SP Suleiman Nguroje, told Arewa PUNCH on Friday in an exclusive...