Nigeria: Kaduna's Blueprint for Sustainable Development

27 October 2024

Kaduna State is positioning itself as a model of fiscal innovation and sustainable development, thanks to a newly unveiled five-year financial strategy.

At a recent event organised by the Ministry of Finance in collaboration with Deloitte, a renowned audit, consulting, tax, and advisory firm, Governor Uba Sani's administration presented its roadmap for financial reforms that aim to drive economic growth, improve public services, and promote transparency. Themed "Soaring to Higher Heights with the SUSTAIN Agenda," the strategy represents a crucial step in the state's long-term development efforts.

The conference, held at Hotel Seventeen in Kaduna, brought together key stakeholders to discuss reforms and examine the performance of the state's budget. The Hon. Commissioner of Finance, Shizzer Nasara Bada, outlined the administration's goals, which are anchored in four key pillars: Goals, People, Product, and Tactics. These pillars guide the state's push towards financial sustainability and resource optimisation.

Governor Sani's administration has already made significant progress, with the ministry of Finance achieving a staggering 1000% improvement in its Internally Generated Revenue (IGR) far exceeding targets over the years. The reforms have not gone unnoticed, as Kaduna State recently ranked second in the Institute of Chartered Accountants of Nigeria (ICAN) Accountability and Transparency Index, solidifying its reputation for fiscal responsibility.

Commissioner Bada attributed this success to a comprehensive strategy centered on leveraging technology, optimising resources, and ensuring transparency. Under the administration's financial reforms, the state has also improved its international credit rating to B, with a positive outlook, a significant boost that enhances Kaduna's ability to attract investment.

At the heart of Kaduna's financial blueprint is a commitment to efficient resource management. The newly launched five-year Growth and Financial Recovery Plan serves as a guide for navigating scarce resources while ensuring that funds are effectively directed toward critical sectors like education, healthcare, and infrastructure.

One of the key achievements of the current administration is its consistent payment of civil servant salaries without delays, which has bolstered both morale and productivity. In a move to further support its workforce, the state introduced a Revolving Loan Scheme, with a "seed fund of N500 million" at a low interest rate of 5%, offering civil servants a lifeline to meet financial obligations.

Additionally, the state has contributed billions of naira towards pension arrears and death benefits, fulfilling a key promise to retirees. The administration also allocates billions to the Contributory Pension Scheme "from May 2023 to June 2024", further demonstrating its commitment to long-term financial security for its workers.

In its quest to streamline public spending, the Kaduna State Government has taken bold steps to reduce the cost of governance. The administration cut the salaries of political appointees by 50%, reduced overheads in Ministries, Departments, and Agencies (MDAs) by the same percentage, and has not procured new official vehicles, opting instead to use existing ones-saving billions of naira in the process.

Governor Sani has also set an example by forfeiting his own salary, redirecting the funds to support public services. These measures reflect the administration's dedication to reducing expenditure while focusing on critical investments.

Security remains a priority for the state, with over 100 security vehicles purchased to bolster efforts in combating crime. This initiative is expected to create a safer environment for businesses to thrive and for citizens to move freely.

On the fiscal side, Kaduna has made significant strides in managing its debt. The State has reduced its domestic debt by 66%, while maintaining sound debt management practices. Yearly Debt Sustainability Analyses (DSA) and Debt Management Reports (DMR) are conducted to ensure the state remains on a sustainable fiscal path.

Education and healthcare have been key beneficiaries of the state's financial reforms. Despite challenges, the state has met educational needs while reducing school fees, showcasing efficient budget management. In the healthcare sector, the government has committed 15% of its annual budget to health services and has funded the renovation of general hospitals and distribution of medical equipment to primary healthcare centres.

The Kaduna State Contributory Health Management Scheme (KADCHMA) has also provided over N1 billion in healthcare coverage to vulnerable populations. Furthermore, the state is investing heavily in education, with over 25.19% of its budget earmarked for this sector in 2024, above the national benchmark.

Beyond financial management, the administration aims to promote economic inclusion. A key aspect of this plan is the creation of microfinance banking services, offering citizens access to affordable credit at favourable rates. This initiative will empower small businesses and individuals, helping to lift more people out of poverty.

Kaduna is also making strides in digitising its operations to improve efficiency and reduce costs. The state is pushing for paperless operations and has centralised procurement processes to take advantage of economies of scale.

Plans are underway to upgrade internet services across all government departments to enhance technology, communication and data management. The use of Artificial Intelligence would also be adopted to improve the effectiveness and efficiency of service delivery.

The State through the Ministry of Finance plans to launch a Public Financial Dialogue (PFD), which will be held quarterly. This initiative will involve citizens in discussions about the State's financial affairs, monitor progress, and collect public feedback on how to enhance financial management. Additionally, the Ministry will host a Yearly Financial Summit to tackle major financial challenges facing the State. This year's summit, themed "Strategic and Sustainable Resource Mobilization for Growth and Development," aims to promote sustainable financial strategies for long-term development.

Kaduna's five-year financial strategy signals a turning point in its development journey. With a clear focus on financial sustainability, transparency, and resource management, Governor Uba Sani's administration is laying a foundation for long-term prosperity. As the state continues to implement these reforms, it is poised to emerge as a leader in fiscal responsibility, setting a benchmark for other states across Nigeria.

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