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Ogun State’s debt profile has reached approximately ₦494 billion, a figure that officials say is a reflection of both strategic infrastructure investment and the harsh reality of national currency devaluation.
During a 2026 budget media briefing on Tuesday, the Commissioner for Finance and Chief Economic Adviser, Dapo Okubadejo, detailed that the state’s local debt rose from ₦133 billion in 2019 to ₦194 billion by December 2025.
However, the foreign debt saw a much sharper spike, jumping from ₦33 billion to ₦300 billion over the same period, almost entirely due to the Naira’s slide from ₦330 to nearly ₦1,500 against the dollar.
Okubadejo defended the rising figures as a result of “fiscal discipline,” arguing that borrowing to fund infrastructure was a calculated hedge against rampant inflation.
He noted that projects completed in 2019 at lower costs would be prohibitively expensive to build today, given that inflation is averaging nearly 30%.
By locking in development early, the administration maintains that it has saved the state significant funds in the long run while ensuring that all borrowing remains within established fiscal responsibility guidelines.
While the debt has grown, the state’s economic indicators show a parallel surge in productivity and self-sufficiency.
Ogun’s Internally Generated Revenue (IGR) has climbed from ₦50 billion in 2020 to over ₦240 billion in 2025, with an ambitious target of ₦512 billion set for 2026.
This revenue growth is a cornerstone of the state’s ₦1.668 trillion budget for the coming year, supporting an economy that has expanded from a GDP of ₦3.5 trillion in 2019 to a projected ₦18.96 trillion in 2026.
The commissioner attributed this “astronomic” growth to deliberate reforms aimed at making Ogun State a hub for private investment.
These efforts include streamlining land title acquisitions, improving regional security, and clearing long-standing backlogs of pension and gratuity arrears dating back to 2012.
With an 85% budget execution rate reported for the previous year, the administration expressed confidence that its blend of infrastructure-led borrowing and aggressive revenue collection will continue to drive the state’s industrial transformation.
