Why Ogun is experiencing rapid economic growth — Commissioner

Economic Adviser to the Ogun Governor, Mr Dapo Okubadejo, has disclosed that the state economy is growing steadily under the Dapo Abiodun-led government, as a result of ease-of-doing business strategy introduced by the administration.

He said that the state projected N512billion as Internally Generated Revenue for 2026.

Okubadejo who doubles as the State Commissioner for Finance, stated this on
Tuesday, during the 2026 Budget Media Parley, held at the Olusegun Osoba Press Centre, Governor’s Office, Oke-Mosan, Abeokuta, declared that the astronomical growth of the state economy is not accidental.

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He said, “Conducive investment environment such as the ease of doing business, security, reforms in various sectors like the land acquisition process, the digitization of the process from acquisition to approval and payment, the digitized C-of-O process, improvement of business registration as well as digitization of billing system, enabled by the state government has further propelled Ogun as the number investment spot in the country.

“Similarly, the infrastructural revolution and intermodal transport system of air, rail, road and sea, has contributed immensely to state economic growth status. As we know, two dry ports – one at Ijebu axis and second one in Kajola in Ifo Local Government Area of the state are underway. With these dry ports in place, they will fast track logistics and export goods via Ogun State.”

He noted that the state had continued to witness the desire of local and foreign investors by establishing their businesses.

Emphasizing that the state remained prudent in the management of its debt profile, stressing that all borrowings are within the limits prescribed by fiscal responsibility guidelines.

Okubadejo explained that the state’s funding structure comprised federal allocations, internally generated revenue (IGR) and debt, adding that borrowing had been undertaken responsibly to support critical infrastructure development.

The Finance Commissioner said, “We have in our debt portfolio a reasonable amount of money that we are paying at single
digit interest rates because of the structure that we are putting in place, the financing strategy that we are putting in place to optimise this debt.

“We also have longer tenure debt that we have also put in place to ease the pressure or the burden on repayment.

“So really, the most important thing is that the content of the debt is reasonable compared to the level of economic activity or the size of your revenue capacity.
And by far the most important thing is your debt repayment ability.

“So we’re really taking note of the debt. We’re watching it closely. We’re guided by using it to fund only capital expenditure and not recurrent expenditure.”

He hinted that the key issue was not merely the size of the debt but how it was utilised, according to him, infrastructure projects executed in 2019 and 2020 at lower exchange and inflation rates would cost significantly more if undertaken in 2025, when inflation is averaging nearly 30 per cent.

He maintained that borrowing to finance infrastructure at an average interest rate of about 20 per cent was a strategic decision, given prevailing economic realities.

The State Commissioner for Works and Infrastructure, Ade Akinsanya, disclosed that the state government has constructed over 1,600km of roads since 2019, saying that another set of 2,000km of roads have been slated for construction before the expiration of Governor Abiodun-led administration.

On his part, the Commissioner for Housing, Jamiu Akande Omoniyi, said the incumbent administration has delivered massive housing units across the state, noting that his Ministry will embark on building and delivering of legacy projects such as the International Conference Centre and Banquet Hall at the Gateway International Airport, Iperu, remodelled Commissioners’ and Legislative Quarters, hundreds of low cost housing units, Havilla housing project, among others before next year.