Economy

Tinubu’s Reforms Slash Northern States’ Debt by 42%, Says Minister

Published

9 months ago

July 31, 2025

Northern states economic growth has accelerated under Tinubu, with a 42.06% debt cut and over 250% revenue surge, thanks to bold subsidy reforms

Northern states economic growth has seen a dramatic turnaround under President Bola Tinubu’s administration, following sweeping fiscal reforms that have slashed regional debt and massively boosted revenue.

Also read: Fuel Subsidy Removal Reforms Defended by Tinubu’s Administration

According to Minister of Budget and Economic Planning, Abubakar Bagudu, the North’s domestic debt fell by a stunning 42.06%, from ₦1.98 trillion to ₦1.14 trillion. This sharp decline was part of a broader national reduction of 33.4% in domestic debt.

Speaking at a two-day session in Kaduna, Bagudu attributed these improvements to Tinubu’s macro-fiscal strategy—especially the controversial removal of fuel subsidies. This move freed trillions of naira, which now flow through the Federation Account.

Between May 2023 and June 2025, revenue allocations to states and local governments more than doubled, jumping from ₦458.81bn to ₦991.81bn. Gombe and Kaduna, for instance, recorded revenue surges of 272.35% and 251.84%, respectively.

The North Central, North East, and North West regions saw increases of 145%, 149%, and 143%.

Bagudu said this new fiscal breathing room allows Northern states to invest heavily in infrastructure, health, and social programs without leaning on excessive borrowing.

Flagship projects now underway include major highways like Kano-Maiduguri, the AKK Gas Pipeline, and the Kaduna-Kano Railway, along with revitalised healthcare centers and record-breaking antenatal visits under the MAMII programme.

Despite skepticism from some Northern leaders, data shared by Bagudu showed tangible progress—backed by infrastructure upgrades, equitable revenue distribution, and stronger healthcare outcomes.