ONDO’S LOW-DEBT ECONOMY: MISSED OPPORTUNITY OR UNTAPPED FRONTIER?
By Kunle Odusola-Stevenson
In Nigeria’s complex fiscal landscape, where many subnational governments grapple with growing debt burdens, Ondo State quietly stands out. Known for its relatively low domestic debt profile, Ondo is often praised for fiscal prudence and responsible financial management. Yet when set against the backdrop of the state’s modest GDP, underdeveloped infrastructure, and muted investor activity, the low-debt label triggers a more complicated conversation.
Is Ondo’s fiscal conservatism a mark of vision—or a symptom of underinvestment in its own future?
Stability Without Growth
For investors, low debt can signal stability—but stability alone doesn’t generate returns. Ondo, despite being richly endowed with bitumen, oil, gas, fertile land, and one of the longest coastlines in southern Nigeria, has not translated its asset base into industrial growth or large-scale investment. Its economic output remains modest, with underwhelming infrastructure and limited diversification.
While it is commendable to keep borrowing in check, the absence of strategic debt utilization—especially for capital projects—suggests a missed opportunity. Roads, logistics hubs, power infrastructure, and digital connectivity remain largely undeveloped, curbing the productivity of its people and the prospects of its economy.
What Investors Really Want
In a competitive investment environment, perception and potential matter as much as balance sheets. Investors seek countries and states that show ambition, readiness, and a pipeline of bankable projects. Ondo’s low debt could be an asset—but without a forward-facing investment story, it risks being seen as a static economy rather than a dynamic one.
Borrowing is not inherently bad. Used wisely, it can unlock value, build critical infrastructure, and attract even more capital. What matters is the vision—and Ondo’s must now go beyond prudence to purpose.
Time for Destination Branding
To unlock its potential, Ondo must reimagine its identity. Through destination branding, the state can transition from being known as “low risk” to “high potential.” This begins with crafting a compelling investment narrative.
Three strategic propositions stand out:
• Blue Economy Hub: With its Atlantic coastline and maritime communities, Ondo can become Nigeria’s leading coastal economy, driving investment in marine logistics, offshore energy, aquaculture, and deep-sea port development.
• Bitumen & Clean Energy Frontier: With Africa’s largest bitumen reserves and growing interest in cleaner fuels, the state can pioneer innovation in sustainable resource extraction and clean technology.
• Tourism & Cultural Economy: Sites like Idanre Hills, Owo Museum, and Araromi Beach offer strong appeal for tourism, culture-based investments, and ecotourism ventures.
When paired with policy clarity, public-private partnerships, investor incentives, and a digital investment promotion strategy, these narratives can breathe life into Ondo’s economic prospects.
A Call to Boldness
Ondo State’s fiscal discipline should not be an excuse for economic timidity. Rather, it should be the foundation for a bold development agenda. By strategically leveraging its debt headroom, streamlining investment procedures, and making infrastructure bankable, the state can lead—not lag—in Nigeria’s economic reinvention.
Final Thoughts
In the end, numbers don’t inspire investors—stories do. If Ondo wants to be more than a well-managed balance sheet, it must tell a bigger story. A story of ambition, opportunity, and forward motion.
The low-debt tag is not the headline—it’s the footnote. The real story is whether Ondo is ready to build, attract, and grow.
Kunle Odusola-Stevenson is a development strategist and public affairs consultant. He writes from Lagos.
