LIVE UPDATES
The Gombe State Commissioner for Finance and Economic Development, Gambo Magaji, on Tuesday, revealed that 10 per cent of the 2025 budget has been earmarked for debt servicing, describing it as minimal.
Magaji disclosed this during the 2025 budget breakdown at the ministry’s conference room.
He stated that Gombe State does not borrow to cover recurrent expenses but instead uses its borrowings to finance capital projects.
He said, “Ten per cent in any sphere is very low. In terms of returns, 10 per cent is minimal. That means we are managing ourselves very well here.
“Don’t forget that even the approved limit from the Debt Management Office is 40 per cent of your total income for borrowing. Now, we are at just 10 per cent, which means we are performing exceptionally well in managing our affairs.”
Magaji further emphasised that borrowing to finance capital projects is a global standard.
“Don’t forget that we are borrowing to improve infrastructure. There is no government anywhere that doesn’t borrow for infrastructure or to ensure necessary services are provided.
“We don’t borrow for recurrent expenses; all our borrowings are directed towards capital projects, and that is best practice,” he added.
