….Expenditure Soars 43.7% To ₦852.5bn As Revenue Declines
…₦341.62bn Deficit Exposes Deepening Fiscal Challenges
…Contractor, Pension Arrears, Other Liabilities Hit ₦176.17bn
Daud Olatunji
Ogun State has emerged among Nigeria’s poorly performing states in fiscal management, ranking 31st in overall fiscal performance despite generating ₦238.5bn internally, as its debt stock climbed to approximately ₦538.9bn, with a staggering fiscal deficit of ₦341.62bn.
The latest BudgIT State of States Report 2026, which examined the fiscal records of Nigerian states for 2025, exposed the widening gap between Ogun’s revenue-generating capacity and its ability to manage public finances sustainably.
The report further showed that the state’s total expenditure surged by 43.70 per cent, from ₦593.27bn in 2024 to ₦852.50bn in 2025, despite a marginal decline in total revenue.
Ogun also emerged as the fourth most indebted state in the country, with its debt stock increasing by approximately 90.9 per cent between 2021 and 2025.
The findings have raised fresh questions about the state’s financial priorities, expenditure management, borrowing strategy and capacity to translate its growing revenue into meaningful development for residents.
Particularly troubling is the revelation that Ogun’s outstanding contractor obligations, pension and gratuity arrears, and other liabilities amounted to ₦176.17bn, comprising ₦97.91bn in contractor obligations, ₦69.95bn in pension and gratuity arrears and ₦8.31bn in other liabilities.
The development presents a troubling picture for a state strategically positioned as one of Nigeria’s major industrial and commercial destinations.
Popularly known as the Gateway State, Ogun shares boundaries with Lagos, Oyo, Osun and Ondo states, as well as the Republic of Benin, giving it significant economic advantages in manufacturing, agriculture, international trade and regional integration.
Despite these advantages, the BudgIT assessment placed the state 31st in overall fiscal performance, exposing serious concerns about the management of its financial resources.
Revenue Declines Despite ₦238.5bn IGR
A breakdown of Ogun’s revenue profile showed that its total revenue declined from ₦512.84bn in 2024 to ₦510.88bn in 2025, representing a 0.38 per cent decrease.
The decline occurred despite significant increases in both internally generated revenue and federal allocations.
The state’s IGR increased by 22.35 per cent, rising from approximately ₦194.93bn in 2024 to ₦238.50bn in 2025.
Similarly, gross allocations from the Federation Account Allocation Committee increased by 59.69 per cent, from ₦127.57bn to ₦203.73bn within the same period.
The report showed that tax revenue rose from ₦74.73bn in 2024 to ₦102.07bn in 2025, representing a 36.59 per cent increase.
Non-tax revenue also increased by 13.49 per cent, from ₦120.21bn to ₦136.43bn.
