Gombe Allocates 10% of 2025 Budget to Debt Servicing

The Gombe State Commissioner for Finance and Economic Development, Gambo Magaji, announced on Tuesday that 10 percent of the 2025 budget has been allocated for debt servicing, which he characterized as a minimal figure.

This disclosure was made during a presentation of the budget breakdown at the ministry's conference room.

Magaji emphasized that Gombe State does not rely on loans to cover recurrent expenses; instead, it utilizes borrowing to fund capital projects. He remarked, “Ten percent in any sphere is very low. In terms of returns, 10 percent is minimal. That means we are managing ourselves very well here.”

He further noted that the approved borrowing limit from the Debt Management Office stands at 40 percent of total income, indicating that the state is performing well in its financial management.

Highlighting a global standard, Magaji reiterated that borrowing for infrastructure development is common practice among governments. “We don’t borrow for recurrent expenses; all our borrowings are directed towards capital projects, and that is best practice,” he stated.