Kaduna: A state choked by misfortune

Kaduna State, a pivotal state in the North West geopolitical zone, is a land rich in human and natural resource potential. Yet, it is currently bogged by a complex maze of paradoxical governance challenges. As we delve into the realities, we encounter threads of rising insecurity, political comedy and drama, and the implications of the continuity of certain political appointees. Also, the fiscal management and increasing debt dilemma in the state cannot be ignored. Likewise, the hope and aspirations of the citizens in educational strides, quality healthcare, and agricultural advancement have been dashed.

A cursory gleaning at the state’s finances, one will discover gross misplacement of priorities. The 2024 state budget of “Rural Transformation for Inclusive Development,” amounting to N458.3 billion, is comprised of capital expenditure of N318.8 billion and recurrent expenditure of N139.4 billion, hoping to go cap-in-hand borrowing the sum of N150.1billion to adequately fund the budget.

The education sector is expected to receive N115.4billion, a far cry from the needed financing. For a state known as the centre of learning with six universities and other tertiary institutions, the sector remains underfunded. It is plagued by infrastructural deficit, and inadequate teachers while grappling with overcrowded classrooms, and empty classrooms in some areas in the state. Although little progress has been made in the sector, it has failed to serve as a fulcrum for nurturing minds and engaging the growing youth population.

The state budget pegged N71.6billion for the health sector. But beyond numbers, it is burdened by systemic inefficiencies, under-equipped, understaffed, and underfunded, with residents facing significant barriers to quality care, hospitals, and clinics. The hospitals are often overcrowded, with chronic shortages of essential drugs and medical supplies. Despite efforts to improve healthcare delivery through initiatives like the Kaduna State Contributory Health Insurance Scheme, poor health outcomes still exist.
While the agricultural sector was recorded to get N22.5billion for programmes targeted at providing improved seeds and fertilizers, it falls short of “cultivating prosperity through employing a significant portion of the population and boosting agricultural productivity.” The sector is bedeviled by a lack of access to modern farming techniques, insufficient infrastructure, and misaligned and inconsistent policy implementation, all of which limit its potential for growth and poverty reduction.

According to the Kaduna State Bureau of Statistics, the population of residents in the state is 10.4 million as of 2024. This is a double-edged sword as it presents both opportunities and challenges. On the one hand, the population can drive economic growth by expanding the labour force and consumer base, and it can put immense pressure on the state’s FAAC receipts on the other hand.

Another aspect of the state’s realities that is concerning is the deteriorating security situation. Insecurity, banditry, and kidnappings have not only disrupted daily life but have also stymied development efforts, particularly in rural areas where agricultural productivity is vital for the local and state economy.
Alarmingly, the state’s rising debt profile has reached critical levels. Its domestic debt is at N321.54billion, external debt at $587.07million and contractual liabilities amounting to N115billion as of December 2023, with an additional N2.9billion for electricity consumed by the state government. The expected internally generated revenue for the state in 2024 is put at N62billion which is N5billion monthly.

Between January and July 2024, Kaduna’s FAAC receipts have fluctuated significantly, with the state receiving an average of N7 billion monthly. This inconsistent revenue stream, we are told, has directly affected the state’s ability to pay salaries, provide for citizens’ welfare, fund essential services, and meet its debt obligations.

The state’s reliance on federal allocations and the volatility of IGR and FAAC revenues underscore the need for fiscal discipline and diversification of income streams.
Unfortunately, the situation is compounded by the political imbroglio in the state. Recently, the State House of Assembly’s ad hoc committee didn’t mince words when they indicted the former governor, Nasir El Rufai, and his cabinet on allegations of corruption, contracts, loans, and financial mismanagement to the tune of N423billion. Meanwhile, El Rufai has instituted a court case against the Kaduna State House of Assembly, but the court declined the suit for lack of jurisdiction.

Another paradox is that about 90 per cent of those who served under the last administration and were indicted still wield influence and now occupy key positions in the present cabinet. This raises several pragmatic questions and indicts the current state government of clientelism and cronyism.

There is a huge anomaly in Kaduna’s agriculture investment. While Kaduna State with a land size of 46,053 Km² was only able to generate a paltry N1,099,299.4 million in 2018 in terms of GDP for the agricultural sector per KDBS, the Netherlands with a land size of 37,378 Km² is estimated to have earned €50.4 billion(equivalent of N87.4trillion according to Webull) from the export of agricultural goods in 2023.

According to Statistics Netherlands, the country has earned €45.7 billion from agricultural goods produced in the Netherlands, and €4.7 billion came from the re-export of agricultural goods produced elsewhere. Crop output includes cereals, industrial crops, forage plants, potatoes, and fruits, while animal output involves cattle, pigs, sheep, goats, poultry, milk, and eggs. There are approximately 55,680 agricultural holdings. Most holdings have holders aged over 64 years. The average agricultural area per holding is 32.8 hectares. Kaduna and Nigeria need to borrow a leaf from the book of the country.
Despite international interventions in agricultural development in Kaduna State, it has failed to reach its full potential. It has benefited from interventions, the most recent being the African Development Bank―the Special Agro-industrial Processing Zones, a N540 million facility granted to Nigeria, with Kaduna being amongst the first states to benefit from the facility.

The project is poised to revolutionise agriculture by creating economic zones in rural areas in beneficiary states by developing infrastructure, establishing 15 Agricultural Industrial Processing Hubs, 15 Agric Transformation Centres, and supplying agricultural inputs and extension workers. Beneficiaries will include smallholder farmers, private sector  agribusinesses, agro-dealers, agro-processors, and agri-preneurs. The SAPZs will allow food and agribusiness companies to situate their factories close to farmers, support processing, reduce food losses, and foster competitive value chains. This is akin to the Netherlands prototype.

Also, the Islamic Development Bank and the International Fund for Agricultural Development said that they have voted $1b (N1.5 trillion) to further deliver special agro-industrial processing zones in 24 states of Nigeria.

Likewise, the state is also a beneficiary of the NG-CARES, a COVID-19 Action Recovery Economic Stimulus fund with a whopping sum of $20m (N31billion) ex-ante initial allocation. The World Bank loan guaranteed by the Federal Government is meant to be used by the state to improve citizens’ lives in critical areas like education, healthcare, security, and infrastructure. And also, to focus on social transfers, food security, and support for small and micro enterprises.

There are several unanswered questions regarding the utilisation of funds meant for agriculture and development in Kaduna. Where have these vast sums gone? Is there any transparency in the disbursement of these funds? Are there tangible results on the ground, or is the state’s agricultural sector languishing?

The challenges facing Kaduna State are a microcosm of the broader issues confronting Nigeria. It is unclear whether the state is attempting to navigate these turbulent waters or if strategic resource management and inclusive development are merely slogans. The true test of leadership lies in the ability to deliver real benefits to the people. The future of Kaduna hinges on whether the state can not only survive but thrive in the years to come.