Northern Nigeria’s North-Central and North-West Regions Struggle with Rising Debt Amid Banditry Crisis

• The combined domestic debt of these states, including Sokoto, increased from N754.2 billion in Q1 2021 to N902.62 billion in the same quarter of this year.

• Analysts widely attribute the low internally generated revenue (IGR) to the extensive insecurity that has significantly disrupted commercial activities in these affected states.

The North-Central and North-West regions of Nigeria, encompassing ten states, are grappling with severe financial challenges compounded by the escalating banditry crisis, according to an analysis by The PUNCH.

States like Zamfara, Katsina, Niger, Plateau, Kano, Jigawa, Kebbi, Nasarawa, Sokoto, and Kaduna are heavily affected by both low revenue generation and surging debts.

The internally generated revenue (IGR) for these states during the first quarter of 2023 amounted to N55.51 billion, a mere 30.85 percent of Lagos State’s IGR for the same period. The poor revenue performance is partly attributed to the widespread insecurity hampering commercial activities.

Zamfara, for instance, generated only N4.28 billion in IGR during the first quarter of 2023, a stark contrast to other states like Delta, Kwara, Edo, and Anambra.

These states’ budget shortfalls reached 26.37 percent, with total domestic debt surging from N754.2 billion in Q1 2021 to N902.62 billion in Q1 2023.

The ongoing banditry crisis has hindered foreign investments in the regions. Out of ten states with reported banditry cases, only four—Katsina, Niger, Plateau, and Kano—managed to attract limited foreign investments between Q1 2021 and Q1 2023.

However, the investments attracted were meager and inconsistent, with concerns growing over the worsening banditry issue. Bandits have gained strength and control in many areas, affecting farming activities and the overall security landscape.

In Zamfara, for instance, farmers are increasingly unable to tend to their lands due to fear of attacks.

The financial strain and security challenges underscore the urgent need for comprehensive strategies to boost revenue generation, attract investments, and address the banditry crisis in these regions…[CONTINUE READING HERE]>>