Fiscal discipline: Ondo records highest domestic debt reduction in Nigeria

Aiyedatiwa’s administration gets unprecedented 82.6 percent debt clearance in one year

Ondo State on Friday emerged as Nigeria’s most fiscally disciplined sub-national government, having reduced its domestic debt by an unprecedented 82.6 percent within one year.

The Chief Press Secretary to the State Governor, Prince Ebenezer Adeniyan, who disclosed this, stated that the domestic debt reduction is the highest and most significant among all 36 states of the federation.

According to him, this remarkable achievement is the result of strategic economic reforms and financial prudence adopted by the administration of Governor Lucky Orimisan Aiyedatiwa since taking office.

Data from the Debt Management Office (DMO) on states’ debt profiles between 2023 and 2024 showed Ondo State leading in domestic debt reduction over the past year.

The figures reveal that Ondo State, under Governor Aiyedatiwa, reduced its domestic debt from ₦74 billion in 2023 to ₦12 billion in 2024 — a ₦61 billion decrease, representing an 82.6 percent reduction.

Since assuming office in December 2023, Governor Aiyedatiwa has prioritised the clearance of salary backlogs, gratuities, and contractual obligations owed by the state government.

This unprecedented progress has had a significant impact on the state’s economy and has helped restore investor and public confidence in the government.

In the first quarter of 2024 alone, Ondo State recorded a 77 percent domestic debt reduction, amounting to ₦55.11 billion. The state’s debt profile dropped from ₦71.5 billion in December 2023 to ₦16.4 billion by March 2024. During this period, Ondo ranked second only to Jigawa State in terms of debt reduction.

Governor Aiyedatiwa’s administration achieved this feat by implementing wide-ranging cost-control measures without disrupting public services or compromising workers’ welfare.

Ondo State’s dramatic debt reduction under Governor Aiyedatiwa is not merely a statistic but a testament to deliberate policy choices, purposeful leadership, and responsible governance.

With this development, Ondo State has distinguished itself as a model of fiscal discipline, financial resilience, and strategic planning within Nigeria’s public sector.

Governor Aiyedatiwa’s administration achieved this feat by implementing wide-ranging cost-control measures without disrupting public services or compromising workers’ welfare.

Ondo State’s dramatic debt reduction under Governor Aiyedatiwa is not merely a statistic but a testament to deliberate policy choices, purposeful leadership, and responsible governance.

With this development, Ondo State has distinguished itself as a model of fiscal discipline, financial resilience, and strategic planning within Nigeria’s public sector.