The Kogi State Government, led by Governor Ahmed Usman Ododo, has announced the successful clearance of N98.8 billion in inherited debts within a mere 15 months. This significant milestone, disclosed by the state’s Commissioner for Finance, Budget, and Economic Planning, Asiwaju Idris, on June 2, 2025, underscores Kogi’s commitment to economic stability and prudent governance, positioning the state as a model for debt management in Nigeria.
Breaking Down the Debt Liquidation
The liquidated debts, inherited from previous administrations, cover a broad spectrum of financial obligations, showcasing the Ododo administration’s resolve to tackle longstanding fiscal challenges. According to the commissioner, the cleared debts include:
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N8 Billion in Bonds: These bonds, issued during the administration of former Governor Idris Wada, were fully settled, marking a significant step in reducing the state’s long-term financial burdens.
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N50.8 Billion in Salary Bailouts: This substantial sum, accrued during the tenure of former Governor Yahaya Bello, was used to address salary arrears and stabilize the state’s workforce. Clearing this debt reflects the government’s prioritization of public sector welfare.
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N10 Billion Infrastructure Loan: Backed by the Excess Crude Account, this loan was repaid, demonstrating Kogi’s commitment to honoring federal-backed financial obligations.
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N30 Billion in Infrastructure Loans: Secured from Zenith Bank and UBA Plc, these loans were utilized for critical infrastructure projects. Their repayment signals Kogi’s ability to balance development goals with fiscal responsibility.
As of September 30, 2024, Kogi State’s debt profile stood at N40.5 billion, a significant reduction from previous levels. This achievement has not gone unnoticed, with global credit rating agency Fitch Ratings upgrading Kogi’s credit outlook from B- to B with a stable rating, a testament to the state’s improved financial health and governance.
Driving Factors Behind the Success
The Ododo administration attributes this feat to a combination of increased internally generated revenue (IGR) and stringent fiscal discipline. Over the past 15 months, Kogi has implemented innovative revenue generation strategies, including streamlining tax collection processes and curbing leakages in public expenditure. These measures have bolstered the state’s financial capacity, enabling it to meet its debt obligations without compromising service delivery.
Governor Ododo’s leadership has emphasized transparency and accountability, ensuring that funds are allocated efficiently and prioritized for high-impact projects. The administration’s focus on economic diversification, particularly in agriculture and solid minerals—sectors where Kogi holds significant potential—has also contributed to the state’s growing revenue base.
“This is a clear demonstration of our commitment to leaving Kogi State better than we met it,” Commissioner Idris stated during the announcement. “Our focus on fiscal discipline and strategic resource management has not only reduced our debt burden but also positioned Kogi as a financially stable state ready for sustainable growth.”
The reduction of N98.8 billion in debt signals a brighter economic future for Kogi State. A lower debt burden frees up resources for critical investments in education, healthcare, and infrastructure, which are essential for improving the quality of life for Kogi’s residents. The Fitch Ratings upgrade also enhances the state’s attractiveness to investors, potentially unlocking new opportunities for economic growth.
Moreover, this achievement sets a precedent for other Nigerian states grappling with high debt levels. Kogi’s success demonstrates that with disciplined financial management, states can reduce their reliance on borrowing while fostering sustainable development. The Ododo administration’s focus on boosting IGR could serve as a blueprint for subnational governments seeking to achieve fiscal independence.
Conclusion
The clearance of N98.8 billion in debt within 15 months is a landmark achievement for Kogi State, reflecting Governor Ododo’s vision for a financially stable and prosperous state. By prioritizing fiscal discipline, boosting revenue, and honoring financial obligations, Kogi has set itself on a path toward sustainable development. As the state continues to implement reforms and attract investment, the people of Kogi can look forward to a future where economic opportunities abound, and public resources are managed with integrity.
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