By Newspot Nigeria News Desk
UMUAHIA, NIGERIA — A prominent civil society organization, the Foundation for Environmental Rights, Advocacy and Development (FENRAD), has raised red flags over the financial trajectory of Abia State, following the release of the 2025 mid-year financial report by the state government. In particular, FENRAD expressed deep worry over a ₦75 billion surge in external loans acquired by the state in 2024, coupled with an uptick in federal allocations now averaging ₦38 billion monthly.
The group, in a strongly worded statement issued on August 3, 2025, by its Executive Director, Comrade Nelson Nnanna Nwafor, noted that while increased revenue could provide much-needed resources for development, the unchecked rise in borrowing without clear terms, objectives, and disclosures could saddle the state with unsustainable debt burdens.
“We view the rising allocation and borrowing as a dual-edged sword,” said Nwafor. “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 official audit report released via the state government’s website (https://abiastate.gov.ng), FENRAD warned that the state’s cumulative external debt spike within the first half of 2025 must now be met with robust public disclosures and prudent spending plans.
FENRAD’s Recommendations to Abia State Government
In its release, FENRAD put forward a five-point demand and recommendation to guide the state toward sustainable fiscal governance:
- Transparency and Disclosure: Publish complete data on the ₦75 billion in external loans — sources, repayment plans, and terms.
- Prudent Use of Public Funds: Strategically deploy the ₦38 billion monthly federal allocation toward vital sectors including education, health, and employment generation.
- Public Engagement and Oversight: Involve civil society and the public in budget tracking and project monitoring through open civic platforms.
- Legislative Oversight: Empower the Abia State House of Assembly to heighten scrutiny and prevent fiscal recklessness.
- Sustainable Debt Management: Implement a debt strategy that balances investment with the state’s repayment capabilities without undermining social services.
FENRAD stated that these measures are essential if the current administration is to avoid a repeat of past mistakes and regain public trust.
“The future of our state depends on what we do with the resources we have today. Abia must not squander this opportunity,” the group warned.
FENRAD reaffirmed its readiness to collaborate with government institutions, lawmakers, and the media in promoting financial responsibility and social equity.
Newspot Nigeria will continue to monitor this developing fiscal issue and provide follow-up reports on how the Abia State government responds to these calls.
FULL STATEMENT BELOW
PRESS RELEASE
For Immediate Release
Date: August 3, 2025
FENRAD Reacts to Abia State’s 2025 Financial Report: Raises Alarm Over ₦75 Billion Surge in External Loans, Urges Fiscal Discipline
Umuahia, Nigeria — The Foundation for Environmental Rights, Advocacy and Development (FENRAD) has raised serious concerns following the release of Abia State’s 2025 mid-year financial report, which reveals a ₦75 billion increase in external loans in 2024 and a substantial rise in federal allocation, now averaging ₦38 billion monthly.
While acknowledging the improved revenue outlook, FENRAD has warned that the current trajectory of external borrowing, if left unchecked, could lead to unsustainable debt levels and long-term financial vulnerability for the state.
“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.”
According to the financial Audit report, source https://abiastate.gov.ng published by the Accountant General Of the state, Abia State’s cumulative external debt has surged within the first half of 2025, a development FENRAD says must be matched with clear disclosures on the purpose, terms, and projected impact of the borrowed funds.
FENRAD’s Key Concerns and Recommendations:
- Transparency and Disclosure:
The government must publish comprehensive information regarding the sources, terms, and repayment plans for the ₦75 billion in external loans. - Prudent Use of Public Funds:
The ₦38 billion monthly allocation must be deployed strategically to address infrastructure gaps, education, health, and youth employment. - Public Engagement and Oversight:
Civil society, media, and the public should be actively involved in budget monitoring and project tracking through open forums and digital transparency platforms. - Legislative Oversight:
The Abia State House of Assembly must intensify its oversight function to prevent fiscal abuse and ensure loan-backed projects deliver value for money. - Sustainable Debt Management:
The government should adopt a medium-to-long-term debt strategy that aligns with the state’s capacity to repay without jeopardizing critical social spending.
A Call for Responsible Leadership
FENRAD emphasized that with the inflow of both statutory allocation and loan funds, Abia State now has a rare opportunity to reposition itself economically. However, the organization warned that mismanagement or lack of fiscal discipline could deepen public distrust and increase the risk of economic instability.
“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 remains committed to working with relevant stakeholders, including the government, legislature, media, and citizens to promote good governance, fiscal accountability, and the equitable use of public resources.
Signed;
Comrade Nelson Nnanna Nwafor
Executive Director
Foundation For Environmental Rights, Advocacy & Development (FENRAD)
Contact:
Media and Advocacy Unit
Foundation for Environmental Rights, Advocacy and Development (FENRAD)
📧: [email protected]
📞: +234 (0)8029860848 (WhatsApp)
🌍: www.fenrad.org.ng
📨: [email protected], [email protected]
Published by Newspot Nigeria.
