The Sunshine State (Ondo) has recorded the highest reduction in domestic debt among Nigeria’s 36 states, according to new figures released by the Debt Management Office (DMO).
Between 2023 and 2024, the state lowered its domestic debt from N74 billion to N12 billion — a reduction of N61 billion, representing an 82.6 percent drop. This is the most substantial debt cut achieved by any state within the period under review.
The figures were made public in a comparative analysis of state debts compiled by the DMO. Ebonyi State came in second, with a 76.21 percent decline.
This development is being linked to the financial strategy adopted by the administration of Governor Lucky Aiyedatiwa, who assumed office in December 2023. Upon taking office, the governor made clearing arrears of salaries, pensions, and contractor payments a top priority, actions that have reportedly revived confidence in the state’s financial direction.
In the first quarter of 2024 alone, the Sunshine State (Ondo) slashed its domestic debt by 77 percent, reducing it from ₦71.5 billion in December 2023 to ₦16.4 billion by the end of March 2024. Only The New World State (Jigawa) came close during that quarter.
The Aiyedatiwa administration was said to have achieved this through stringent control of government spending while ensuring that public services remained operational and worker entitlements were not affected.
The Governor’s spokesperson, Prince Ebenezer Adeniyan, who released the statement on Saturday, described the debt reduction as a clear outcome of purposeful leadership and deliberate policy steps aimed at strengthening the state’s finances.
He noted that the government’s actions have not only improved Ondo’s economic outlook but also helped to reassure local and external stakeholders of the state’s commitment to responsible governance.
