Aiyedatiwa Achieves 82.6% Debt Cut, Sets New Benchmark for Fiscal Discipline in Ondo State

In a remarkable turnaround for state-level financial management, Ondo State Governor Lucky Aiyedatiwa has announced an unprecedented 82.6 percent reduction in the state’s domestic debt within a single year. The achievement, hailed by policy analysts and state officials alike, underscores the success of aggressive cost-control strategies and prudent fiscal policies adopted under his leadership since assuming office in December 2023.

According to official data released by the Debt Management Office (DMO), Ondo State’s domestic debt dropped from ₦74 billion in 2023 to ₦12 billion in 2024—reflecting a monumental reduction of ₦61 billion. This positions Ondo State as the leading state in domestic debt reduction across Nigeria within the past year.

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Discipline Driving Results: A New Fiscal Model for Nigerian States

The focus keyword is Discipline, as it best captures the essence of the Aiyedatiwa administration’s efforts in resetting Ondo State’s financial outlook through deliberate planning, strong leadership, and uncompromising economic prudence.

Governor Aiyedatiwa, speaking through his Chief Press Secretary, Mr. Ebenezer Adeniyan, emphasized that this remarkable financial progress was achieved without halting public services or compromising the welfare of civil servants. “This outstanding achievement is attributed to the strategic economic reforms and financial prudence of Governor Lucky Aiyedatiwa’s administration since its inception,” Adeniyan said.

The governor’s approach to debt management did not rely on austerity alone. Instead, it focused on streamlining operations, improving revenue collection, and enforcing strict controls on public expenditure. At a time when many states grapple with bloated overheads and mounting debt burdens, Ondo’s success offers a contrasting narrative—one of responsibility and resilience.

From Burden to Breakthrough: The Debt Drop Timeline

The timeline of the debt reduction effort paints a picture of swift and strategic execution. When Aiyedatiwa assumed office in December 2023, the state’s domestic debt was pegged at ₦74 billion. Within just three months—by the end of Q1 2024—the debt had been slashed to ₦16.4 billion, representing a 77 percent drop worth ₦55.1 billion.

This dramatic improvement placed Ondo State second only to Jigawa State in terms of domestic debt reduction in the first quarter of 2024. By April, the figure had further dropped to ₦12 billion, making Ondo the top-performing state in the country in terms of percentage debt reduction.

This accomplishment did not go unnoticed, as the DMO highlighted Ondo State in its national fiscal performance comparison for states, recognizing the government’s bold and effective strategies.

Policy Choices Rooted in Economic Justice and Transparency

Beyond the numbers, Governor Aiyedatiwa described the debt reduction as a reflection of “deliberate policy choices, strong leadership, and responsible governance.” His administration placed a premium on clearing longstanding financial obligations—particularly the backlog of salaries, pensions, and contractual debts owed by the previous administration.

This commitment to financial justice boosted the morale of the state workforce and suppliers, revitalized public trust in government, and generated increased economic activity through renewed spending power among residents.

Observers note that the administration’s decision to maintain essential public services while also enforcing fiscal discipline reflects a balanced and people-centered governance style. Social services, including healthcare, education, and infrastructure development, continued to receive attention even as the government tightened its financial belt.

A Template for Fiscal Stability in Nigeria

Financial experts have called Ondo State’s feat a model for other subnational governments struggling with rising domestic debts and dwindling federal allocations. “Governor Aiyedatiwa’s approach proves that state governments can achieve fiscal stability through intelligent planning, transparency, and political will,” said public finance analyst Dr. Femi Ogundare.

With many Nigerian states facing similar economic challenges, the Ondo example is expected to influence state-level economic reforms nationwide, particularly as the federal government pushes for better debt sustainability practices and improved revenue generation mechanisms.

Furthermore, the achievement could become a critical talking point for the Aiyedatiwa administration in the upcoming political cycle, reinforcing its position as a government that delivers results, builds trust, and prioritizes financial responsibility.

 Sustaining the Gains

While celebrating the success, the governor’s office was quick to caution against complacency. Mr. Adeniyan noted that Governor Aiyedatiwa remains committed to sustaining the gains made thus far and ensuring that future financial decisions are consistent with the principles of accountability and service delivery.

“With this achievement, Ondo State stands out as a model for fiscal discipline, financial resilience, and strategic planning in Nigeria’s public sector,” he concluded.

As the nation continues to battle inflation, rising debt profiles, and limited growth, Ondo State’s experience under Governor Aiyedatiwa provides a compelling case for the impact of visionary leadership and disciplined economic governance.