Minister of Budget and Economic Planning, Senator Abubakar Bagudu, says the fiscal health of Nigeria’s Northern states has significantly improved under President Bola Tinubu’s administration, with the region’s domestic debt dropping by 42.06 percent due to sweeping economic reforms.
Bagudu disclosed this during a presentation to the Sir Ahmadu Bello Memorial Foundation at a two-day interactive session on government-citizen engagement in Kaduna. The event, themed “Assessing Electoral Promises: Fostering Government-Citizen Engagement for National Unity,” focused on reviewing Tinubu’s promises to Northern stakeholders during the 2023 election campaign.
According to a statement from the ministry on Wednesday, Bagudu said total domestic debt for all 36 states and the Federal Capital Territory declined from ₦5.8 trillion to ₦3.8 trillion — a 33.4 percent drop. In the North alone, debt fell from ₦1.98 trillion to ₦1.14 trillion.
He attributed the improvement to Tinubu’s economic reforms, particularly the removal of fuel subsidy, which led to higher federally allocated revenue and reduced borrowing needs.
Bagudu noted that from May 2023 to June 2025, states and local governments saw their combined net statutory and VAT allocations more than double from ₦458.81 billion to ₦991.81 billion representing a 116 percent increase. This, he said, excludes additional revenue from FX gains and augmentation funds.
Gombe State, for instance, saw its allocation jump by over 272 percent, from ₦6.69 billion to ₦24.91 billion, while Kaduna State’s allocation rose by 252 percent to ₦42.01 billion.
Regionally, North Central states recorded a 145 percent rise in allocations, the North East 149 percent, and the North West 143 percent.
“These gains have created fiscal space for infrastructure and social investments without resorting to unsustainable debt,” Bagudu said.
He pointed to several ongoing infrastructure projects under Tinubu’s Renewed Hope Agenda, including the Sokoto-Badagry Superhighway, Kano-Maiduguri Road dualisation, and the AKK Gas Pipeline, among others.
The administration is also expanding rail infrastructure, with work progressing on the Kaduna-Kano Railway and light rail projects in Kano, Kaduna, and the FCT.
On healthcare, Bagudu said over 1,003 primary healthcare centres have been revitalised nationwide, with 10 new medical warehouses and upgrades at federal hospitals across Northern states. Through the MAMII programme, the region recorded 13.1 million antenatal visits, 4.2 million safe deliveries, 4,000 free Caesarean sections, and nutritional support for over six million women.
Addressing regional equity concerns, the minister insisted that President Tinubu has distributed projects and resources fairly across all regions.
“While some Northern leaders express concern over fairness, data shows that 19 governors and political appointees from the region see clear evidence of balanced development,” he stated.
