Nigeria’s 19 Northern states have reduced their collective debt by 42% over the past year, according to the country’s Minister of Budget and Economic Planning, Abubakar Bagudu. Speaking at a government-citizen engagement forum in Kaduna, Bagudu attributed this financial turnaround to President Bola Tinubu’s economic reforms, including the contentious removal of fuel subsidies. The region’s debt fell from ₦1.98 trillion ($1.3 billion) to ₦1.14 trillion ($769 million) between May 2023 and June 2024, while nationwide debt for all 36 states and the capital, Abuja, declined by 33.4% to ₦3.8 trillion ($2.6 billion).
The two-day event, organized by the Sir Ahmadu Bello Memorial Foundation, highlighted the fiscal implications of Tinubu’s policies, such as increased revenue sharing and debt restructuring. Bagudu reported that net statutory revenue and value-added tax allocations to state and local governments more than doubled during this period, rising from ₦458.81 billion ($307 million) to ₦991.81 billion ($663 million). He emphasized that subsidy removal, though initially disruptive, redirected oil revenues to public coffers, boosting federal allocations by 340%.
Northern states saw disproportionate gains, with Gombe’s monthly allocations surging 272% and Kaduna’s by 251%. Regionally, revenue shares grew by 145% in the North Central, 149% in the Northeast, and 143% in the Northwest. “States now have the means to invest in their future,” Bagudu stated, citing infrastructure projects like the Sokoto-Badagry Superhighway and upgrades to 1,003 primary healthcare centers. Over 13 million antenatal visits and 4.2 million safe deliveries were recorded under a maternal health initiative in the North.
The forum, attended by senior officials including Secretary to the Government George Akume, aimed to evaluate progress on Tinubu’s 2023 election pledges. While Bagudu defended the reforms as “equitable for all regions,” he acknowledged short-term economic hardships. Critics, however, argue that inflation and currency instability continue to strain households, underscoring the complex trade-offs of Nigeria’s fiscal restructuring.
