Ogun State's debt has reached N494 billion, according to the Commissioner for Finance, while the state's Internally Generated Revenue has significantly increased to N240 billion.
The Ogun State Commissioner for Finance, Dapo Okubadejo, announced that the state's debt profile has escalated to approximately N494 billion as part of a media briefing regarding the 2026 budget. This represents a substantial increase from the reported N133 billion local debt in 2019 and a foreign debt that has risen from N33 billion to N300 billion due to the devaluation of the naira, which has dramatically impacted international debt obligations. As the naira's exchange rate has shifted from N330 to between N1400 and N1500 to one dollar, the state has seen a marked increase in its foreign debt liabilities.
In contrast, Okubadejo highlighted a significant improvement in Ogun State's Internally Generated Revenue (IGR), which has climbed from about N50 billion in 2020 to over N240 billion currently. This revenue boost is indicative of the government's efforts to enhance financial autonomy and reduce reliance on federal allocations. The projection for 2026 anticipates an IGR increase to N512 billion, suggesting a trend towards greater fiscal responsibility and resilience, albeit against a backdrop of escalating debt.
The declaration also raises crucial questions about financial management, sustainability, and the long-term implications for Ogun State's economy. With a growing debt profile amidst rising revenues, stakeholders will need to focus on comprehensive economic strategies to ensure that development goals are met without jeopardizing fiscal stability. The balance between debt and revenue generation will be vital in determining Ogun's financial trajectory in the coming years.
