The Foundation for Environmental Rights, Advocacy and Development (FENRAD) has expressed strong concerns over Abia State’s rising debt profile, following the release of the state’s 2025 mid-year financial report.
According to the report, Abia recorded a ₦75 billion increase in external loans in 2024 and now receives an average of ₦38 billion in monthly federal allocations. While acknowledging the improved revenue outlook, FENRAD warned that the state’s growing reliance on external borrowing could lead to unsustainable debt levels and long-term financial vulnerability if not carefully managed.
“We view the rising allocation and borrowing as a dual-edged sword,” said Nelson Nnanna Nwafor, Executive Director of FENRAD. “On one hand, it provides the government with an opportunity to invest in infrastructure and public services. On the other, it raises serious red flags about debt sustainability, transparency, and accountability.”
Citing the state’s official audit report published HERE by the Accountant General, FENRAD stressed that the sharp increase in external debt must be accompanied by full disclosure of the purpose, terms, and expected impact of the loans.
FENRAD’s key concerns and recommendations include:
- Transparency and disclosure:
The organization demands comprehensive disclosure of the sources, terms, and repayment plans for the ₦75 billion loan. - Prudent use of public funds:
It urges strategic deployment of the ₦38 billion monthly allocation to critical sectors like infrastructure, education, health, and youth employment. - Public engagement and oversight:
FENRAD advocates for civil society, media, and citizen involvement in budget monitoring and project tracking through open forums and digital platforms. - Legislative oversight:
The Abia State House of Assembly is encouraged to strengthen its oversight role to prevent fiscal abuse and ensure that loan-funded projects provide value for money. - Sustainable bebt management:
A medium-to-long-term debt strategy is recommended to align with the state’s repayment capacity and safeguard social sector funding.
A call for responsible leadership
FENRAD noted that the current financial inflows offer Abia State a rare opportunity to reposition its economy. However, it cautioned that without transparency and fiscal discipline, the situation could erode public trust and pose economic risks.
“The future of our state depends on what we do with the resources we have today. Abia must not squander this opportunity,” the group stated.
FENRAD reaffirmed its commitment to working with the government, legislature, media, and civil society to promote transparency, good governance, and equitable resource allocation in Abia State.
