By HeapNews
Ondo State has emerged as Nigeria’s most fiscally disciplined sub-national government, reducing its domestic debt by a record-breaking 82.6 percent in just one year, according to the latest data from the Debt Management Office (DMO).
The state’s domestic debt dropped dramatically from N74 billion in 2023 to N12 billion in 2024, a difference of N61 billion, the highest reduction recorded by any of the 36 states in the country.
The remarkable financial turnaround is being credited to the strategic economic reforms and prudent financial management introduced by Governor Lucky Orimisan Aiyedatiwa since assuming office in December 2023.
Reacting to the report, Governor Aiyedatiwa said the milestone reflects a deliberate and transparent economic direction aimed at restoring Ondo’s financial health.
“We came into office with a clear plan to bring Ondo State back on a stable financial path. Our focus was on reducing waste, honouring existing obligations, and rebuilding public trust,” the governor said.
According to the DMO report, Ebonyi State came second with a domestic debt reduction of 76.21 percent, far behind Ondo’s 82.6 percent.
In just the first quarter of 2024 alone, Ondo State reduced its domestic debt by ₦55.11 billion, a 77 per cent drop from ₦71.5 billion in December 2023 to ₦16.4 billion in March 2024. This placed the state second only to Jigawa State in Q1 2024 domestic debt reduction.
Governor Aiyedatiwa emphasized that the fiscal turnaround did not come at the cost of public welfare.
“Despite these cuts, we have not halted any critical services. Salaries are being paid, gratuities are being cleared, and our obligations to contractors are being honoured. This is responsible governance in action,” he stated.
Economic analysts have lauded Ondo State’s feat, noting its potential to attract more investors and bolster economic activity.
“This kind of fiscal discipline sends a strong signal to investors that Ondo State is serious about stability and transparency,” said Bola Aluko, a public finance expert. “It’s a model other states should study.”
With this historic achievement, Ondo State has positioned itself as a benchmark for financial resilience and smart governance, earning national praise for its leadership in debt management and economic reform.