The Foundation for Environmental Rights, Advocacy and Development (FENRAD) has expressed deep concern over Abia State’s growing debt profile, following the release of the state’s 2025 mid-year financial report.
According to the report, available on the state government’s official website, Abia’s external loans surged by ₦75 billion in 2024, while federal allocations have risen sharply to an average of ₦38 billion monthly.
While acknowledging the improved revenue inflow, Fenrad warned that the state could face long-term financial risks if external borrowing continues unchecked.
“We view the rising allocation and borrowing as a dual-edged sword,” said Nelson Nanna 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 hand, it raises serious red flags about debt sustainability, transparency, and accountability.”
The organisation urged the government to match the increased borrowing with transparency and clear communication on the purpose, terms, and expected impact of the loans.
Key recommendations from FENRAD: publish full details of the sources, terms, and repayment plans for the ₦75 billion external loans, strategically deploy the ₦38 billion monthly allocation to address critical sectors such as infrastructure, education, health, and youth employment, and actively involve civil society, media, and the public in budget monitoring and project tracking through open forums and digital platforms.
Fenrad also wants the government to strengthen the oversight role of the Abia State House of Assembly to ensure accountability and prevent misuse of borrowed funds, and develop and implement a medium-to-long-term debt strategy aligned with the state’s repayment capacity and social spending needs.
Fenrad emphasised that the current inflow of funds presents Abia State with a critical opportunity to drive economic development and improve citizens’ welfare. However, the group cautioned that mismanagement could worsen public distrust and destabilise the state’s economy.
“The future of our state depends on what we do with the resources we have today. Abia must not squander this opportunity,” the statement concluded.
Fenrad reaffirmed its commitment to working alongside government institutions, the legislature, the media, and citizens to promote good governance, fiscal accountability, and equitable use of public resources.
