Adeleke reduces Osun's local debt by N69.18bn in three years

Governor Ademola Adeleke has cut Osun State's local debt by N69.18 billion since he took over. This move has shifted the state from being one of Nigeria’s 10 most indebted states to 18th on the local debt list, according to the Debt Management Office (DMO).

Adeleke became the governor of Osun on 27 November 2022.

As of 31 December 2022, the state’s local debt was N148.37 billion, based on DMO’s figures for all 36 states and the Federal Capital Territory. At that time, Osun ranked as the ninth most indebted state in Nigeria.

The debt began to drop slowly during Adeleke’s first year. By March 2023, it was at N147.05 billion, then N145.71 billion in June, N145.27 billion in September, and N144.60 billion by December 2023.

In 2024, the decrease became clearer. By 31 March 2024, Osun’s local debt fell to N87.01 billion, a decline of N57.59 billion from December 2023.

The debt continued to drop, reaching N86.06 billion by June 2024, N85.18 billion by September, and N84.27 billion by December.

This downward trend continued into 2025. By March 2025, the debt stood at N83.32 billion, then N82.34 billion in June, N81.33 billion in September, and N80.28 billion by December.

The latest DMO report, covering up to 31 March 2026, shows Osun’s local debt at N79.19 billion. This means a reduction of N69.18 billion or around 46.6 percent from the N148.37 billion before Adeleke became governor.

This reduction has improved Osun’s ranking among Nigeria’s most indebted states. From ninth place in December 2022, the state moved to 18th place by March 2026.

To bring down the local debt, Osun has spent a lot on debt servicing. The state’s 2023 financial statements show it spent N16.73 billion on public debt charges that year.

Public debt charges cover “interest and other expenses” related to state borrowing for eligible assets. Of the N16.73 billion spent in 2023, N1.57 billion was for domestic interest discount while N15.15 billion was for domestic principal payments.

In 2024, the debt servicing costs rose significantly to N23.05 billion. Unlike the previous year, most of this went to foreign debt. The 2024 financial statements indicate that only N500,000 was paid towards local debt that year.

The expenses climbed again in 2025, with Osun reporting N27.44 billion in public debt charges. According to the 2025 financial statements, N4.56 billion went to interest on local debt while N22.89 billion was for domestic principal repayment.

These figures show that while Osun's local debt has been decreasing under Adeleke, the state has still spent heavily to meet its debt obligations.

The biggest drop in debt happened between December 2023 and March 2024, when it fell from N144.60 billion to N87.01 billion. The DMO data do not explain the specific transactions that led to the N57.59 billion reduction during this time.

These figures focus only on local debt and do not reflect the total debt of Osun State, which includes other obligations. As of March 2026, Osun’s local debt of N79.19 billion remains a big financial responsibility, even if the state’s ranking on the DMO’s list has improved since Adeleke took office.