The Ogun State Government has disclosed that its total debt profile currently stands at about N494 billion, with officials attributing the significant rise in foreign debt to the devaluation of the naira.
The Commissioner for Finance and Chief Economic Adviser to the Governor, Dapo Okubadejo, made the disclosure on Tuesday during the 2026 budget media briefing held at the Olusegun Osoba Press Centre, Governor’s Office, Oke Mosan, Abeokuta.
Okubadejo explained that while the state’s local debt rose from N133 billion in 2019 to N194 billion as of December 2025, foreign debt increased more sharply from N33 billion in 2019 to N300 billion within the same period.
He attributed the spike in foreign debt largely to exchange rate fluctuations rather than fresh excessive borrowing. According to him, the naira, which exchanged at about N330 to a dollar in 2019, now trades between N1,400 and N1,500, significantly inflating the naira value of existing external obligations.
“As of December 2025, the local debt was N194 billion. When you compare that with the N133 billion in 2019, you will see that we have exhibited fiscal discipline,” he stated.
The commissioner maintained that the administration has managed its debt responsibly, stressing that borrowings were strategically deployed to finance key infrastructural projects aimed at stimulating economic growth and improving living standards across the state.
Despite concerns over the rising debt profile, Okubadejo highlighted what he described as strong revenue growth under the current administration. The state’s Internally Generated Revenue (IGR), he said, increased from about N50 billion in 2020 to over N240 billion in 2025.
He further revealed that the government is projecting an ambitious N512 billion in IGR for the 2026 fiscal year, a move he said reflects ongoing reforms in tax administration, improved compliance, and expanding economic activity.
Analysts say the figures reflect a broader trend among subnational governments grappling with the impact of currency depreciation on external debt portfolios. However, they note that sustained growth in internally generated revenue could strengthen Ogun’s fiscal position if projections are realised.
As the 2026 budget cycle unfolds, attention will likely focus on how the state balances debt servicing obligations with continued investments in infrastructure and social services.
