Nigeria’s Minister of Budget and Economic Planning, Abubakar Bagudu, has announced that President Bola Ahmed Tinubu’s economic reforms have resulted in a remarkable 42.06% reduction in debt across the 19 Northern states, cutting liabilities from ₦1.98 trillion to ₦1.14 trillion.
Speaking at a two-day engagement hosted by the Sir Ahmadu Bello Memorial Foundation in Kaduna, Bagudu declared the reforms “a tangible success” that had equally slashed national subnational debts by 33.4%.
He told Northern leaders that the so-called Renewed Hope Agenda is “delivering real value to citizens through improved subnational fiscal capacity.”
According to him, statutory revenues and VAT allocations to states and local councils more than doubled between May 2023 and June 2025, leaping from ₦458.81 billion to ₦991.81 billion.
Bagudu attributed this to the scrapping of Nigeria’s controversial fuel subsidy, which he described as “a hard but necessary call” that freed trillions of naira.
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“States now have the means to invest in their future,” he said. Gombe saw the most dramatic jump in allocation, from ₦6.69 billion to ₦24.91 billion – a 272.35% increase – while Kaduna’s revenue surged by ₦30 billion to ₦42.01 billion.
Northern zones reported rises in federal allocations ranging from 143% to 149%, reflecting what Bagudu said was a fair redistribution of oil wealth.
“This is not charity. It is health justice delivered with intent,” he added, referencing massive upgrades in healthcare and education across the region.
Over 1,000 health centres were revitalised, and more than 13 million antenatal visits recorded under the MAMII scheme.
Bagudu also highlighted major infrastructure projects, including highways, railways and gas pipelines, aimed at linking the North to economic opportunities.
While critics say the short-term pain from fuel subsidy removal remains real, Bagudu insisted the long-term benefits are transformational, claiming Tinubu’s administration is “investing in people, not politics.”
The minister concluded by saying the Northern region was now better positioned than ever to fund development priorities and sustain progress.
