By BONIFACE AKARAH

The Foundation for Environmental Rights Advocacy and Development (FENRAD) has called for urgent transparency and accountability in the management of Abia State’s debt profile, warning that underlying fiscal vulnerabilities could undermine long-term stability.

In a statement issued on May 1, 2026, in Umuahia, the organisation linked its concerns to fresh data released by the National Bureau of Statistics, which shows Nigeria’s total public debt rose from N153.29 trillion in the third quarter of 2025 to N159.28 trillion—an increase of 3.90 per cent

“This upward trajectory in national debt reinforces the urgency for fiscal discipline and transparency across all tiers of government, particularly at the subnational level where vulnerabilities are often less visible but more dangerous,” the group stated.

According to the NBS report, external debt stood at N74.43 trillion (46.73 per cent), while domestic debt rose to N84.85 trillion (53.37 per cent), reflecting a growing dependence on borrowing nationwide.

Within this context, FENRAD said developments in Abia State present a troubling paradox.

Although the state’s total debt stock is estimated at ?48 billion with a 2025 debt service obligation of about N23.29 billion, the organisation warned that headline figures conceal deeper structural risks.

“On the surface, Abia’s debt position appears moderate and within sustainability thresholds. However, a deeper fiscal analysis reveals hidden stress points that demand urgent policy attention,” FENRAD said.

The group highlighted that while the state’s debt service-to-total revenue ratio is relatively low at 8–9 per cent, its debt service-to-internally generated revenue (IGR) ratio stands at approximately 61 per cent—well above the 50 per cent fiscal stress benchmark.

“This means that a significant portion of Abia’s internally generated revenue is already tied up in servicing debt, leaving limited room for independent development financing and increasing reliance on federal allocations,” the statement added.

FENRAD further raised concerns over weak transparency practices, noting the absence of publicly accessible and detailed debt data.

“There is insufficient disclosure regarding loan terms, creditor composition, project-specific utilisation of borrowed funds, and repayment frameworks. This opacity weakens accountability and erodes public trust,” it said.

The organisation also questioned the developmental impact of borrowing in the state.

“Rising debt without clear, measurable development outcomes—such as infrastructure expansion, improved service delivery, or inclusive economic growth—poses a serious risk of fiscal fragility,” FENRAD warned.

It noted that debt servicing obligations in Abia have increased by between 15 and 25 per cent from 2024 to 2025, driven by macroeconomic pressures including higher interest rates and exchange rate volatility.

In a regional comparison, the group observed that while Abia’s debt level remains lower than that of neighbouring states such as Enugu and Imo, it shows higher internal fiscal strain than Anambra State.

“This places Abia in a category of ‘hidden fiscal vulnerability,’ where moderate debt levels mask deeper structural weaknesses,” the statement said.

FENRAD warned that the current fiscal structure exposes the state to shocks, limits funding for essential services, and weakens confidence in public financial management.

The organisation issued a series of recommendations to the state government, including full disclosure of debt profiles, legislative scrutiny of borrowing, and stronger public financial management systems.

“Responsible borrowing must be anchored on transparency, accountability, and measurable development outcomes. Fiscal stability without transparency is not sustainable,” it stressed.

FENRAD also called for improved internally generated revenue, reduced dependence on federal allocations, and increased citizen participation in monitoring debt-funded projects.

“The people of Abia State deserve a fiscal system where public resources are managed prudently, openly, and in ways that directly improve their quality of life,” the group added.

The organisation reaffirmed its commitment to engaging stakeholders to promote accountability and ensure that public finance management aligns with the interests of citizens.