ONDO NO LONGER A DEBTOR STATE: DEBT MANAGEMENT OFFICE CONFIRMED.

By Comrade Olabode Akinwale

Exactly 160 days ago, on the 4th of May, 2025 I published an article where I offered a detailed and comprehensive conversation about the ranking of Ondo State by the Debt Management Office (DMO) as the most financially disciplined state government in Nigeria in its year 2025 First Quarter (Q1) financial performance index.

According to that DMO report, Ondo State reduced its domestic debts from N74 billion in 2023 to N12 billion in 2024 which was about 83 percent reduction!

The state governor, Hon (Dr) Lucky Aiyedatiwa who since taking the oath of office in Ondo State has not rest on his oars in vigorously driving a strong economy that is propelled by macroeconomic stability, business investment and policies that support growth and financial inclusion deserves some accolades along with his amiable team of financial and economic experts led by the Honorable Commissioner for Finance – Mrs Omowunmi Isaac.

For any state government to be financially discipline and prudent to the extent of not just cutting down on its debt profile, but to have completely wiped off its remaining debts within a space of another five months as confirmed by the DMO in its recent quarterly review and publication is a no mean achievement.

That Ondo State is now debt free is worth celebrating.

The good citizens of Ondo State can now rejoice and at the same time look forward to the numerous benefits that should ordinarily come with such a milestone.

Henceforth, the state’s credit rating will be enhanced, thereby attracting foreign and local investments and also boosting people’s confidence in the economy.

Furthermore, a debt – free state economy will mitigate the risks associated with debt overhang, promoting stability and sustainable development.

In essence, now that government borrowing has reduced, private sector investments can increase, invariably driving economic growth and job creation.

With reduced debt burden the government can now be more flexible financially, allocating more resources to critical sectors like healthcare, education, agriculture and Infrastructure, promoting economic growth and poverty reduction.

The state’s finance and economic team’s ingenious reengineering of the state’s finances from the old wasteful ways to a more thrifty carefulness has helped the state to totally offset its debts and eliminate the recurrent debt servicing costs.

By so doing, the government can now redirect funds to vital public services, stimulating economic activities.

Little wonder the state government is now speeding up works on all the infrastructural projects within the state that many thought have been abandoned.

Despite the huge economy of Lagos State that is in the range of $259 billion, higher than Kenya’s GDP of $132 billion, the state is still far behind Ondo State in debt servicing and repayment index.

The administration of Governor Lucky Aiyedatiwa appears resolute in setting new records of achievements in Ondo State.

For the records, it’s the first time in history that any government in Ondo State will completely rid the state of debt overhang. And of note is the fact that this debts were incurred by past governments.

Moreover, it’s also the first time that Ondo State will have a female Commissioner for Finance.

It’s also the first time a governor will uninterruptedly allow his finance and economic team of experts put the wheels of the state’s economy on track, a decision which has continued to yield positive results for the state.

Just like what former president Chief Olusegun Obasanjó did during his tenure as executive president of Nigeria many years ago by not just giving clear cut responsibilities to his finance minister – Dr (Mrs) Okonjo Iweala, the president also backed her responsibilities up with some degrees of authority that enabled her to succeed in her gargantuan task of riding Nigeria of her huge debts overhang with the World Bank and Paris Club, Governor Lucky Aiyedatiwa painstakingly and meticulously searched for and got a thorough bred financial expert to help put the finances of the state back in shape.

And since the Finance Ministry of Ondo State has been under the leadership of the female Commissioner, the state has not being stranded financially or economically.

Another attestation is the debt – free status that Ondo State just attained.

The finance commissioner’s assiduousness and the state governor’s profound wisdom, shrewdness, and good judgement in matters of governance has paid off handsomely for the people of Ondo State.

It is obvious therefore that the administration of Governor Lucky Aiyedatiwa is focused on strategic economic reforms, financial prudence,, infrastructural developments, and regular payment of salaries and offsetting of backlog of gratuities which are all part of the indices the Debt Management Office used in assessing and rating the performances of the state.

As the newly elected government of Ondo State continue in office, it is hoped that this new lease of life will help to better improve the overall quality of life for the citizens of the Sunshine State.

Ondo State must continue to be FREE.

Comrade Olabode Akinwale writes from Akure, Ondo State