Northern States’ Debt Drops by 42 Percent says Budget Minister

The Minister of Budget and Economic Planning, Abubakar Bagudu, says economic reforms under President Bola Tinubu have reduced the debt burden of the 19 Northern states by 42.06 percent, from ₦1.98 trillion to ₦1.14 trillion. He said the debt portfolio for all 36 states and the FCT had also dropped by 33.4 percent, from ₦5.8 trillion to ₦3.8 trillion. Bagudu made the disclosure on Wednesday in Kaduna at a two-day citizen engagement organised by the Sir Ahmadu Bello Memorial Foundation.

Bagudu stated that the reforms had more than doubled monthly federal allocations to states and local governments, increasing from ₦458.81 billion in May 2023 to ₦991.81 billion in June 2025. He attributed the revenue surge to the removal of the fuel subsidy and other fiscal adjustments. Citing Gombe and Kaduna as examples, he said Gombe’s monthly allocation rose from ₦6.69 billion to ₦24.91 billion, while Kaduna’s increased from ₦11.94 billion to ₦42.01 billion.

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He added that the revenue gains had improved the fiscal space of state governments, enabling investments in health, education, and infrastructure. Bagudu highlighted key federal projects in the North, including major highways, railways, and the AKK gas pipeline. He said over 1,000 primary healthcare centres had been revitalised, and 10 upgraded medical warehouses were now located in the region.

The event, which reviewed the president’s electoral promises to the North, was attended by over 60 federal political appointees, including SGF Senator George Akume and ministers from the region. Bagudu concluded that while the administration’s policies were equitable across all zones, the North had recorded significant economic progress under the Renewed Hope Agenda.