The Kogi State Government said it had cleared N98.8 billion in debts inherited from previous administrations, marking what officials described as a major step towards economic recovery and fiscal discipline.
Commissioner for Finance, Budget and Economic Planning, Asiwaju Idris, made the announcement Monday during a post-Executive Council briefing at the Government House in Lokoja. He said the debts were fully paid off within the first 15 months of Governor Ahmed Ododo’s administration.
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“This is a landmark achievement. His Excellency Governor Ododo has demonstrated fiscal discipline and commitment to economic recovery. Within 15 months, we have cleared N98.8 billion in inherited debt,” Mr Idris said.
The breakdown includes N8 billion in bonds from the Idris Wada administration, N50.8 billion in salary bailouts from the last government, a N10 billion infrastructure loan backed by the Excess Crude Account, and infrastructure loans totalling N30 billion from Zenith Bank and UBA Plc.
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The commissioner also said the state’s credit rating has been upgraded by Fitch Ratings from ‘B-’ to ‘B’ with a stable outlook, attributing the improvement to prudent financial management. As of September 30, 2024, the state’s debt profile stood at N40.5 billion.
Governor Ododo, during the council meeting, urged government officials to deepen engagement with communities and support local industries. He directed all officials to wear made-in-Kogi fabrics as part of efforts to promote indigenous businesses and strengthen grassroots connections.
“We are in government to serve the people, and that means staying connected to their needs and aspirations,” the governor was quoted as saying.
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Information Commissioner Kingsley Fanwo described the directive as a symbolic and economic gesture to boost local pride and production. He said infrastructure projects, including perimeter fencing and hostel buildings at the Confluence University of Science and Technology, Osara, were nearing completion, while works at Kogi State University, Kabba, were also progressing.
The council also approved a bill to restrict heavy truck movements during peak hours and another to establish a state agency for climate change response.
The announcement comes amid growing concern over rising debt levels among Nigerian states and the lack of transparency around how they borrow and repay.
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