Reforms: North’s Debt Down By 42% — FG

The Minister of Budget and Economic Planning, Abubakar Bagudu, has said that the 19 Northern states experienced a 42.06% debt reduction, from N1.98 trillion to N1.14 trillion, as a result of the economic reforms of President Bola Tinubu’s administration.

His remarks were contained in a statement issued by the ministry on Wednesday during his presentation to the Sir Ahmadu Bello Memorial Foundation at a two-day interactive session on government-citizen engagement held in Kaduna.

He also noted that the debt portfolio of the 36 states and Abuja was reduced by 33.4% from N5.8 trillion to N3.8 trillion under the president’s deft financial engineering.

Bagudu told his audience, “These results demonstrate the tangible benefits of macro-fiscal reforms. The Renewed Hope Agenda is delivering real value to citizens through improved subnational fiscal capacity. The Tinubu administration at the centre remains committed to fiscal transparency, equitable distribution, and continued collaboration with states and LGAs.”

Assessed by the quantum leap in revenue and massive debt reduction of the states, he said the North has made more significant economic progress under Tinubu.

Themed ‘Assessing Electoral Promises: Fostering Government-Citizen Engagement for National Unity’, the engagement was attended by over 60 Northern federal political appointees, including the Secretary to the Government of the Federation, Senator George Akume, who led the delegation, ministers and heads of some ministries, departments and agencies; Northern state governors, and thought leaders in the region, particularly the Arewa Consultative Forum.

The Foundation’s engagement was to evaluate Tinubu’s election promises to its members, attracting key Northern ministers, including Bagudu, the Minister of Information and National Orientation, Mohammed Idris, the Minister of Defence, Mohammed Badaru, and the Minister of Agriculture and Food Security, Abubakar Kyari, as well as the National Security Adviser, Malam Nuhu Ribadu.

He stated that the president’s bold economic reforms had increased revenue for the states, even as their debts had fallen, freeing up more resources for social and infrastructural development. Bagudu stated that the situation had greatly benefited the 19 Northern states, whose federally allocated revenue had increased significantly since Tinubu took office on 29 May 2023.

He explained that Tinubu’s reforms led to significant revenue growth for subnational governments, pointing out that between May 2023 and June 2025, total net statutory revenue and VAT allocation to States and Local Governments (excluding EMT levy, FX gains, and augmentations) more than doubled, rising from ₦458.81 billion to ₦991.81 billion.

He stated that this reflects an increase of ₦533 billion or 116.17% across the federation. According to the minister responsible for budgeting and economic planning, this significant increase in allocation was mainly due to the Federal Government’s bold reforms, including the removal of the fuel subsidy.