By Karen Ibrahim

Governor Dauda Lawal of Zamfara State is pursuing an unusual fiscal strategy: financing major development projects while avoiding new commercial bank loans, despite spending years in the banking industry facilitating credit for governments and public institutions.

Lawal, who previously served as Executive Director, Public Sector North, at First Bank of Nigeria, assumed office in May 2023 and has since prioritised revenue generation, spending discipline and strategic partnerships to fund his administration’s projects.

One of the most notable projects is the Gusau International Airport, reportedly constructed at a cost of approximately ₦75 billion. His administration has also embarked on road construction, school rehabilitation, healthcare improvements and market development without relying on new commercial bank borrowing to finance its projects.

The approach raises an important question: how has a former banker who understands government borrowing and credit facilities chosen to pursue development while limiting commercial debt?

Zamfara’s Debt Profile Records Significant Decline

According to data cited from BudgIT’s State of States report, Zamfara State’s public debt declined from ₦136.70 billion at the end of 2023 to ₦104.42 billion by December 2024, representing a reduction of approximately 23.6 per cent.

The administration has also clarified that the reported ₦14.26 billion in borrowing relates to the outstanding balance of a ₦20 billion bond issued by the previous administration for the cargo airport project, rather than a new borrowing initiative by the current government.

The figures have placed the state’s approach to public debt and infrastructure financing under scrutiny, particularly given the scale of its development needs.

IGR Surges as Lawal Pushes Revenue Generation

A central part of the administration’s fiscal strategy has been the expansion of Internally Generated Revenue (IGR).

BudgIT data cited in the report shows that Zamfara’s IGR increased from ₦6.51 billion in 2022 to ₦22.16 billion in 2023, representing growth of approximately 240 per cent. The state’s total revenue also rose from ₦87.68 billion to ₦144.95 billion over the same period.

IGR reportedly increased further to approximately ₦25.46 billion in 2024.

The growth has been attributed largely to improved personal income tax collections, which reportedly doubled to ₦12.18 billion in 2023.

The administration is seeking to build on this progress by reducing the state’s dependence on allocations from the Federation Account and attracting private investment into agriculture, manufacturing and solid minerals.

In July 2026, a proposed $200 million lithium mining and processing investment in Zurmi was announced, potentially opening new opportunities for employment, local processing and revenue generation. The project’s implementation and eventual economic impact remain important factors to monitor.

From Roads to Healthcare: Where the Money Is Going

Despite the constraints associated with limited borrowing, the Lawal administration has pursued projects across several sectors.

In infrastructure, the government has prioritised road construction, urban renewal and rural connectivity, including approximately 70 kilometres of feeder roads and the development of 40 markets comprising about 4,000 shops, according to the account.

In security, the administration has invested in strengthening security operations and established Community Protection Guards to support efforts against insecurity across the state.

The education sector has also received attention, including efforts to address inherited financial obligations. These include ₦1.4 billion in outstanding WAEC debts accumulated between 2018 and 2022, alongside other liabilities.

In healthcare, projects include the upgrading of Yariman Bakura Specialist Hospital, rehabilitation and equipping of primary healthcare centres across the state’s 147 wards, installation of solar power systems in health facilities and recruitment of healthcare personnel.

Budgetary commitments to healthcare reportedly increased from ₦31.92 billion in 2024 to ₦64.12 billion in 2025 and ₦87.46 billion in 2026.

The administration has also prioritised agricultural development, economic expansion and women’s empowerment as part of its broader development agenda.

How His Banking Experience Shapes His Fiscal Strategy

Lawal’s years in banking gave him experience dealing with public-sector finances, government deposits and credit facilities.

That background may help explain his administration’s emphasis on debt affordability, repayment obligations and the long-term consequences of borrowing.

Commercial loans can provide governments with capital for infrastructure and other essential projects, but they also create repayment obligations that can place pressure on future budgets.

For Zamfara, which faces significant infrastructure gaps, insecurity and inherited financial liabilities, balancing immediate development needs with long-term fiscal sustainability remains a major challenge.

Rather than relying heavily on commercial bank loans, the administration has also pursued concessional financing and development partnerships, including World Bank-supported programmes such as AGILE, ACReSAL and RAAMP, which target education, agricultural and climate resilience, and rural road development.

Such programmes can provide access to development funding under conditions that differ from conventional commercial borrowing, although their effectiveness ultimately depends on implementation and measurable outcomes.

The Bigger Picture: Can Zamfara Sustain the Momentum?

Governor Lawal’s approach centres on expanding revenue, controlling expenditure, reducing debt exposure and attracting private investment while continuing to finance essential public services.

The proposed lithium investment in Zurmi represents part of the administration’s broader ambition to diversify the state’s economic base. If successfully implemented, projects of this nature could support local employment, expand economic activity and improve future revenue generation.

However, the sustainability of the strategy will depend on whether increased revenues translate into lasting improvements in public services, infrastructure and living standards.

Avoiding commercial bank loans does not automatically guarantee sound fiscal management, just as borrowing does not necessarily indicate financial irresponsibility. The more important considerations are the cost of financing, the government’s ability to meet its obligations and the economic and social returns generated by public expenditure.

For Zamfara State, the key test will be whether the administration can sustain its development projects, improve security, strengthen public institutions and reduce inherited liabilities without creating an unsustainable financial burden for future administrations.

Lawal’s experience as a banker provides an important context for understanding his approach. The results of his fiscal strategy, however, will ultimately be measured by verified financial records, completed projects and tangible improvements in the lives of Zamfara residents