𝗢𝗴𝘂𝗻 𝗱𝗲𝗯𝘁 𝗵𝗶𝘁𝘀 𝗡494𝗯𝗻, 𝗜𝗚𝗥 𝗿𝗶𝘀𝗲𝘀 𝗮𝗯𝗼𝘃𝗲 𝗡240𝗯𝗻

Ogun State’s total debt profile has climbed to about ₦494 billion, with authorities attributing a significant portion of the increase to the impact of naira devaluation on external borrowings. Despite the rising debt figures, the state government says its Internally Generated Revenue (IGR) has strengthened, surpassing ₦240 billion, reflecting improved fiscal performance.

Officials disclosed that the spike in debt is largely linked to foreign loans whose value rose in naira terms following currency fluctuations. According to the state’s financial update, most of the obligations were inherited or tied to long-term infrastructure and development projects aimed at boosting economic growth and attracting investment.

The government maintained that the rising debt profile does not indicate fiscal distress, stressing that Ogun remains within sustainable borrowing limits as guided by federal regulations. Authorities noted that ongoing projects in roads, industrial corridors, education, and health are expected to generate economic returns that will support repayment capacity over time.

Financial analysts, however, urged caution, warning that while increased IGR is a positive signal, debt servicing costs could place pressure on future budgets if exchange rate volatility persists. They called for a balanced strategy that prioritises revenue expansion alongside prudent borrowing.

Meanwhile, state officials highlighted recent reforms in tax administration, digital revenue collection, and investment promotion as key drivers behind the improved IGR performance. They added that the state aims to further widen its revenue base by supporting small businesses, expanding industrial clusters, and enhancing ease of doing business initiatives.

The government reiterated its commitment to transparency and fiscal responsibility, assuring residents that borrowed funds are being channelled into projects designed to improve economic productivity and long-term development across the state.