Ogun State debt reaches N494bn while Internally Generated Revenue rises past N240bn, reflecting fiscal discipline and infrastructure development
Ogun State’s debt profile currently stands at about N494bn, the Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo, confirmed on Tuesday, attributing the sharp rise largely to foreign debt and naira devaluation.
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Okubadejo noted that local debt increased from N133bn in 2019 to N194bn as of December 2025, while foreign debt rose from N33bn to N300bn over the same period.
He explained that the naira’s depreciation against the dollar, now trading between N1,400 and N1,500, significantly contributed to the increase.
The commissioner highlighted the state’s Internally Generated Revenue (IGR), which climbed from around N50bn in 2020 to over N240bn in 2025, with projections of N512bn for 2026.
Speaking at the 2026 budget media briefing at the Olusegun Osoba Press Centre in Abeokuta, Okubadejo said the government had efficiently managed debt, using borrowings to finance infrastructure development.
He explained, “The most important consideration with debt is not just its quantum but whether it is within fiscal responsibility guidelines, which we have not breached. The debt has been used to fund infrastructure, hedge against inflation, and support development at whatever interest rate, around 20 per cent.”
The commissioner disclosed that the 2026 budget increased from N1.054tn in 2025 to N1.668tn, while Ogun’s economy expanded from N3.5tn in 2019 to a projected N18.96tn in 2026, attributing growth to a conducive business environment through improved security, streamlined land acquisition, and infrastructure development.
Okubadejo also announced that pension and gratuity arrears for retirees from 2012 to 2020 have been cleared.
Annual pension payments rose from N6.7bn in 2019 to N20bn in 2025, projected to reach N40bn by 2029, while N23.3bn was paid in gratuities for retirees during the same period.
He noted that over 300 workers who retired in July 2025 are receiving six-month palliatives pending completion of pension documentation.
The commissioner described newly approved Additional Pension Benefits as the first of its kind in Nigeria, to be integrated formally into the state’s pension law.
Commissioner for Budget and Planning, Olaolu Olabimtan, said the 2026 budget reflected strong fiscal reforms, noting an 85 per cent budget execution rate in 2024 and sustained financial stability.
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Other commissioners highlighted achievements in roads, healthcare, rail projects, education and housing across the state.
