Ogun State’s debt including foreign liabilities has climbed to N494 billion,
according to Commissioner for Finance and Chief Economic Adviser to the Governor, Dapo Okubadejo.
While local debt rose from N133bn in 2019 to N194bn as of December 2025, foreign debt increased from N33bn in 2019 to N300bn.
He attributed the sharp rise in foreign debt to the devaluation of the naira, explaining that a dollar, which exchanged for N330 in 2019, now trades between N1,400 and N1,500.
The commissioner also highlighted the state’s Internally Generated Revenue, which increased from around N50bn in 2020 to over N240bn in 2025, with a projected N512bn for 2026.
Speaking at the 2026 budget media briefing held at Olusegun Osoba Press Centre, Governor’s Office, Oke Mosan, Abeokuta, Okubadejo on Tuesday, said the government had efficiently managed debt, using borrowings to finance infrastructural development.
He said: “As of December 2025, the local debt was N194bn. When you compare that with the N133bn in 2019, you will see that we have exhibited fiscal discipline.
“And the foreign debt is N300bn due to devaluation. What was $100m in 2019, about N33bn, is now almost N150bn, even without taking a dime.”
He added:”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.”
Okubadejo further 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.
He attributed the economic growth to deliberate efforts by the administration to ensure a conducive business environment through improved security, streamlined land acquisition, and robust infrastructure development.
The commissioner also announced that the state had cleared pension and gratuity arrears for retirees from 2012 to 2020, with annual pension payments rising from N6.7bn in 2019 to N20bn in 2025, projected to reach N40bn by 2029.
He noted that N23.3bn had been paid in gratuities covering retirees from 2012 to 2020, alongside N32.8bn in outstanding gratuities for local government retirees inherited by the administration.
“Over 300 workers who retired in July 2025 are currently receiving six-month palliatives pending completion of their pension documentation,” Okubadejo said.
He also described the newly approved Additional Pension Benefits as the first of its kind in Nigeria, adding that amendments to the state’s pension law would formally integrate the scheme.
Mr. Olaolu Olabimtan, the Commissioner for Budget and Planning, said the 2026 budget reflected ,”strong fiscal reforms,” noting an 85 per cent budget execution rate in 2024 and sustained financial stability.
Other commissioners highlighted sectoral achievements, including extensive road construction, increased healthcare funding, rail extension plans, education support programmes, and expanded housing projects across the state.
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