In an era where subnational debts spiral across Nigeria, Delta State is rewriting the fiscal playbook under Governor Sheriff Oborevwori. Through an aggressive debt reduction strategy and a commitment to transparent governance, the state has emerged as a national model for financial prudence and sustainable economic management.
Official data from the Debt Management Office (DMO) reveals that Delta State’s debt profile has plummeted from a peak of N465 billion to N199.575 billion, marking the largest debt reduction among Nigeria’s 36 states. This translates to a repayment of N265.425 billion, leaving only 42.79 percent of the original debt outstanding. Such a feat underscores the governor’s commitment to fiscal discipline without compromising the state’s developmental agenda.
Governor Oborevwori’s administration, which assumed office on May 29, 2023, inherited a substantial debt burden of N465 billion. By March 2024, the DMO confirmed this figure. Within a few months, by July 2024, the State had already repaid N130 billion. By December 2024, the debt balance stood at N199.575 billion, reflecting a total repayment of over N266 billion in just seven months of focused fiscal strategy.
This extraordinary progress was driven by a freeze on new borrowing and a strategic prioritization of debt repayment. Increased allocations from the Federation Account, boosted by the naira’s devaluation, provided the fiscal headroom needed to offset existing obligations. In sharp contrast to states like Lagos and Rivers, which have continued to accumulate debt to finance capital expenditure, Delta’s approach has favoured long-term sustainability over short-term expansion.
Importantly, this disciplined financial posture has not stalled development. Governor Oborevwori has advanced an ambitious infrastructure agenda without resorting to new loans. Notably, the State signed a N78 billion contract with Julius Berger for the construction of three flyover bridges in Warri. In addition, a minimum of N2 billion was earmarked for road construction in each of the state’s 25 local government areas.
The administration has also prioritized inherited projects, ensuring continuity and value for money. These include the Trans Warri/Ode Itsekiri Road in Warri South LGA; the Ayakoromor Bridge across the Forcados River and its approach roads at Egbo-Ide/Ayakoromor in Ughelli South and Burutu LGAs; the 5.7 KM Olomoro/Igbide Road in Isoko South LGA; and the nearly completed 169km Ughelli–Asaba federal highway. The Beneku Bridge has already been completed and opened to use; all achieved without fresh borrowing.
Looking ahead, Delta State’s debt profile is projected to decrease further by the end of 2025, as the administration intensifies efforts to boost internally generated revenue (IGR). By diversifying the State’s revenue base and enhancing tax collection efficiency, the government aims to reduce reliance on volatile federal allocations. This forward-looking approach is expected to strengthen the State's financial independence and resilience.
Delta State’s remarkable debt reduction under Governor Sheriff Oborevwori is more than a fiscal milestone, it is a governance blueprint. By repaying over N266 billion in inherited debt, freezing new borrowings, and investing in critical infrastructure, the administration has set a high standard for fiscal responsibility in Nigeria. If sustained, Delta State’s model may well become the gold standard for subnational governance, offering a compelling example for other States in the pursuit of sustainable development.
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