The Federal Government has announced a 42.06% drop in the domestic debt of Northern states, attributing the fiscal improvement to key economic reforms implemented under President Bola Tinubu. According to the Minister of Budget and Economic Planning, Abubakar Bagudu, the reforms—particularly the removal of the fuel subsidy—have enabled Northern states to significantly reduce their debt burden from N1.98 trillion to N1.14 trillion. His comments came during a government-citizen engagement event organized by the Sir Ahmadu Bello Memorial Foundation in Kaduna, aimed at evaluating Tinubu’s electoral promises to the North.
Bagudu revealed that the overall domestic debt of the 36 states and the Federal Capital Territory also declined by 33.4%, from N5.8 trillion to N3.8 trillion. Simultaneously, there was a notable rise in federal allocations, with net statutory revenue and VAT distributed to states and local governments increasing by over 116% from N458.81 billion in May 2023 to N991.81 billion in 2025. The minister credited this revenue surge to the elimination of fuel subsidies, which freed up funds for distribution through the Federation Account, helping states avoid unsustainable borrowing.
Northern states reportedly benefited disproportionately from these fiscal adjustments. For example, Gombe’s allocation surged by over 272%, while Kaduna’s rose by more than 251%. Regionally, North Central, North East, and North West saw increases of 145%, 149%, and 143% respectively. Bagudu stated that these gains had empowered state governments to invest more in infrastructure and social services, thereby fostering regional development and stability.
In support of these claims, Bagudu cited major infrastructure projects being undertaken in Northern Nigeria, including extensive roadworks like the Abuja-Kaduna-Kano Expressway, the Sokoto-Badagry Superhighway, and multiple dual carriageways. He also highlighted railway and gas pipeline projects, as well as urban rail developments in Kaduna and Kano. These initiatives fall under the administration’s “Renewed Hope Agenda” and are said to reflect its commitment to inclusive development.
On healthcare, the minister reported revitalization of over 1,000 primary health centres and significant improvements in maternal care under the MAMII programme, which delivered 4.2 million safe births and 4,000 free Caesarean sections. Bagudu maintained that despite some skepticism from regional leaders, the data showed Northern states were major beneficiaries of the reforms. He concluded that the Tinubu administration remains dedicated to equitable development and fiscal transparency nationwide.
Source: Punch