The Ogun State Commissioner for Finance and the Chief Economic Adviser to the Gov Dapo Abiodun, Dapo Okubadejo, on Tuesday said that the debt profile of the state is around N494bn.

Okubadejo said that while the local debt, which was N133bn in 2019 when the present government resumed office, stood at N194bn as of December 2025, the foreign debt, which was also N33bn as at 2019, is now N300bn.

He explained that the sharp increase in the foreign debt was due to the devaluation of the naira, explaining that a dollar, which used to exchange for N330 in 2019, now goes for between N1500 and N1400.

This is just as the Commissioner also said that the Internally Generated Revenue of the state, which used to be about N50bn in 2020, is now over N240bn, while the projection of the government for the year 2026 stands at N512bn.

Okubadejo disclosed this on Tuesday during the 2026 budget media briefing held at Olusegun Osoba Press Centre, Governors’ Office, Oke Mosan, Abeokuta.

The Commissioner said that the state government has efficiently managed the debt and that the borrowings were actually used to finance the infrastructural development of the state.

He explained that “As of December 2025, the local debt was N194 billion. And when you look at that, with the level of infrastructure that we have done, also taking note of the fact that the debt as of 2019 was N133 billion, compared to N194 billion by December 2025, you will see that we have exhibited fiscal discipline.

“And of course, if you look at the foreign debt, the foreign debt is N300 billion, the foreign debt, of course, is what it is due to devaluation. There’s been a devaluation of the Naira from N330 to $1 in 2019, approximately, to what we have now, which is around N1,500 or N1,400.

He stated further that”So even without taking a dime, the $100 million of debt we had in 2019, foreign debt, which was about N33 billion at that time, just without even doing anything, and with even payment of principal and interest over the last six years, the $100 million which was N33 billion at that time is now almost N150bn”.

Okubadejo stated further that what is most important with debt is not its quantum alone, but the quantum has to be within the fiscal responsibility guidelines, which the government has not breached.

He explained, “What have you done with the debt? Have you used the debt to fund infrastructure? And if that’s the case, which is the case here, then you’ve used that debt at whatever average interest rate it is, around 20% thereabouts,

“You’ve used that debt to edge against inflation. Because what you did in 2019-2020 at N330 Naira to a dollar, of course can not amount to same cost in 2025 when the exchange rate is now between N1500 and N1400 and with inflation averaging almost 30%, you can see what the cost of that infrastructure you missed in 2019, you can see how much it’s going to cost you now.

“So taking debt to fund infrastructure is a wise thing, and we will continue to do that optimally within the guidelines of the law”.