While many state governments in Nigeria continue to rely on loans to finance infrastructure projects, Zamfara State Governor, Dauda Lawal, is pursuing a different financing approach, combining increased internally generated revenue, fiscal discipline and development partnerships to fund major projects, including the controversial ₦75 billion Gusau International Airport.
Lawal, a former Executive Director, Public Sector North, at First Bank of Nigeria, assumed office in May 2023 with an administration that has placed emphasis on revenue mobilisation, expenditure control and reducing dependence on commercial bank borrowing.
Since taking office, his government has embarked on several infrastructure and social development projects, including road construction, school rehabilitation, healthcare improvements, market development and the Gusau airport project.
The scale of these projects, particularly the reported ₦75 billion airport investment, raises an important question: how has Zamfara been financing such ambitious infrastructure development while its reported debt profile continues to decline?
The answer, according to figures attributed to BudgIT and the administration’s fiscal disclosures, lies in a combination of improved revenue generation, inherited financing arrangements, development interventions and efforts to attract private investment.
Zamfara’s Debt Profile Declines by 23.6%
Data attributed to BudgIT’s State of States report indicates that Zamfara’s public debt declined from ₦136.70 billion at the end of 2023 to ₦104.42 billion by December 2024.
This represents a reduction of approximately 23.6 per cent within one year.
The administration has also explained that the reported ₦14.26 billion borrowing figure relates to the outstanding balance of a ₦20 billion bond issued by the previous administration to finance the cargo airport project, rather than a fresh borrowing initiative by Lawal’s government.
The distinction is important in assessing the state’s borrowing history and the financial obligations inherited by the current administration.
However, a declining debt profile does not, on its own, establish how every major infrastructure project is being financed. The financing structure, payment records, contractual commitments and outstanding liabilities associated with the Gusau airport project remain important areas for public scrutiny.
IGR Growth Provides Additional Financial Capacity
One of the administration’s major fiscal priorities has been increasing Zamfara’s Internally Generated Revenue (IGR).
According to the figures cited in the report, the state’s IGR increased from ₦6.51 billion in 2022 to ₦22.16 billion in 2023, representing growth of approximately 240 per cent.
Total revenue also reportedly increased from ₦87.68 billion to ₦144.95 billion over the same period.
The state’s IGR subsequently rose to approximately ₦25.46 billion in 2024.
Personal income tax collections reportedly contributed significantly to the increase, doubling to ₦12.18 billion in 2023.
The administration’s strategy is to strengthen the state’s revenue base, reduce excessive dependence on federal allocations and attract investments into agriculture, manufacturing and solid minerals.
In July 2026, a proposed $200 million lithium mining and processing investment in Zurmi was announced. If implemented, the project could create employment opportunities, stimulate local industrial activities and expand the state’s revenue base.
Nevertheless, the proposed investment must be distinguished from actual realised investment. Its implementation, financing arrangements, production capacity and eventual contributions to government revenue will determine its economic significance.
By Karen Ibrahim
