The Minister of Budget and Economic Planning, Abubakar Bagudu, has said that President Bola Tinubu’s economic reforms have significantly improved the fiscal position of Northern states, reducing their domestic debt by 42.06%. Speaking at an interactive session organised by the Sir Ahmadu Bello Memorial Foundation in Kaduna, Bagudu attributed the shift to policy changes, especially the removal of fuel subsidy, which has increased federally allocated revenues and eased the debt burden across the region.
According to the ministry’s statement, total domestic debt across the 36 states and the FCT dropped from N5.8 trillion to N3.8 trillion—a 33.4% decrease—with Northern states recording an even sharper fall from N1.98 trillion to N1.14 trillion. Bagudu also highlighted that net statutory revenue and VAT allocations to states more than doubled between May 2023 and June 2025, surging by 116.17% from N458.81 billion to N991.81 billion. He emphasized that these gains had given state governments greater flexibility to invest in infrastructure and social programmes without relying on unsustainable borrowing.
The minister further detailed ongoing federal projects across Northern Nigeria, including major highways, railway lines, and health initiatives under the Renewed Hope Agenda. He cited over 1,000 revitalised primary healthcare centres and millions of antenatal visits and safe deliveries under the MAMII programme as evidence of the administration’s commitment to inclusive development. Bagudu concluded by reassuring critics that data-backed evidence shows the North has been a key beneficiary of Tinubu’s macro-fiscal reforms, promoting national unity through equitable growth.
