Ogun State’s Commissioner for Finance and Chief Economic Adviser to the Governor, Dapo Okubadejo, announced on Tuesday that the state’s total debt has reached approximately N494 billion.
Okubadejo explained that local debt increased from N133 billion in 2019 to N194 billion by December 2025, while foreign debt climbed significantly from N33 billion in 2019 to N300 billion. He attributed the steep rise in foreign debt to the naira’s devaluation, noting that the exchange rate for one dollar rose from N330 in 2019 to between N1,400 and N1,500.
Highlighting the state’s fiscal performance, Okubadejo reported that Ogun’s Internally Generated Revenue (IGR) grew from about N50 billion in 2020 to over N240 billion in 2025, with a projection of N512 billion for 2026.
During the 2026 budget media briefing at the Olusegun Osoba Press Centre, Governor’s Office, Oke Mosan, Abeokuta, Okubadejo emphasized that the government has managed its debts prudently, channeling borrowings into infrastructure development.
As of December 2025, our local debt was N194 billion, up from N133 billion in 2019, demonstrating fiscal discipline. Our foreign debt now stands at N300 billion due to devaluation. For example, $100 million, which was about N33 billion in 2019, is now almost N150 billion, even without new borrowing, he said.
He stressed that the key issue with debt is not just its size but whether it remains within fiscal responsibility guidelines—a threshold Ogun has not crossed. “Our debt finances infrastructure, hedges against inflation, and supports development, even at interest rates of around 20 percent, Okubadejo added.
The commissioner also revealed that the 2026 budget increased from N1.054 trillion in 2025 to N1.668 trillion, while Ogun’s economy grew from N3.5 trillion in 2019 to a projected N18.96 trillion in 2026. He credited this growth to the administration’s efforts to create a business-friendly environment through better security, simplified land processes, and major infrastructure projects.
Okubadejo announced that the state has cleared pension and gratuity arrears for retirees from 2012 to 2020. Annual pension payments increased from N6.7 billion in 2019 to N20 billion in 2025 and are projected to reach N40 billion by 2029. He noted that N23.3 billion has been paid in gratuities to retirees from 2012–2020, along with N32.8 billion in outstanding gratuities for local government retirees inherited by the current administration.
“More than 300 workers who retired in July 2025 are receiving six-month palliatives while their pension documentation is finalized,” Okubadejo said.
He also highlighted the introduction of Additional Pension Benefits, described as Nigeria’s first, and stated that amendments to the state’s pension law will formally incorporate this scheme.
Commissioner for Budget and Planning, Olaolu Olabimtan, said the 2026 budget reflects robust fiscal reforms, with an 85 percent budget execution rate in 2024 and ongoing financial stability.
Other commissioners outlined achievements in sectors such as road construction, healthcare funding, planned rail expansion, educational support, and the development of new housing projects across Ogun State.
