The administration of Osun State Governor Ademola Adeleke has reduced the state’s domestic debt by N69.18 billionsince assuming office in November 2022, according to data from the Debt Management Office (DMO).
The reduction has seen Osun move from being Nigeria’s ninth most indebted state in terms of domestic debt in December 2022 to 18th position as of March 2026.
When Adeleke assumed office on November 27, 2022, Osun’s domestic debt stood at N148.37 billion, based on DMO data covering the 36 states and the Federal Capital Territory.
The debt declined gradually throughout 2023, falling to N147.05 billion in March, N145.71 billion in June, N145.27 billion in September and N144.60 billion by December.
A sharper decline was recorded in 2024.
By March 2024, Osun’s domestic debt had dropped to N87.01 billion, representing a reduction of N57.59 billion from the December 2023 figure.
The downward trend continued, with the debt falling to N86.06 billion in June, N85.18 billion in September and N84.27 billion by December 2024.
The state sustained the reduction throughout 2025. Its domestic debt stood at N83.32 billion in March, N82.34 billion in June, N81.33 billion in September and N80.28 billion by December.
The latest DMO data, covering the period up to March 31, 2026, put Osun’s domestic debt at N79.19 billion.
This represents a 46.6 per cent reduction, or N69.18 billion, from the N148.37 billion recorded shortly before Adeleke took office.
Osun Continues Debt Servicing
The reduction in Osun’s domestic debt has occurred alongside continued spending on debt servicing.
The state’s 2023 audited financial statements showed that Osun spent N16.73 billion on public debt charges during the year.
Of the amount, N1.57 billion was recorded as domestic interest discount, while N15.15 billion was used to repay domestic principal.
Debt servicing expenditure increased to N23.05 billion in 2024. However, almost all of the payment that year was directed towards foreign debt, with only N500,000 recorded as payment towards domestic debt.
In 2025, the state recorded N27.44 billion in public debt charges. According to its audited financial statements, N4.56 billion went towards interest on domestic debt, while N22.89 billion was used to repay domestic principal.
The figures indicate that Osun has continued to commit significant resources to meeting its debt obligations while reducing its domestic debt stock.
The most significant drop occurred between December 2023 and March 2024, when the state’s domestic debt fell from N144.60 billion to N87.01 billion.
However, the DMO data do not provide details of the specific transactions responsible for the N57.59 billion reduction during the period.
The figures also cover domestic debt only and should not be interpreted as Osun State’s total indebtedness, which includes other debt obligations.
As of March 2026, Osun’s domestic debt stood at N79.19 billion, leaving the state with a substantial financial obligation despite its improved position on the DMO’s domestic debt ranking.