Under Eno, Akwa Ibom’s domestic debt drops by N116bn

Akwa Ibom State has reduced its domestic debt stock by N116 billion since Governor Umo Eno assumed office in May 2023, moving from the seventh most indebted state in Nigeria to 15th as of March 2026.

Mr Eno became governor on 29 May 2023, when the state’s domestic debt stood at N199.58 billion as of 30 June 2023, according to debt data from Debt Management Office, Abuja.

By March 2026, the debt had fallen to N83.63 billion, representing a reduction of N115.95 billion, or 58 per cent, from the June 2023 level.

The decline has been consistent under Mr Eno’s administration.

The state’s domestic debt fell from N193.45 billion in September 2023 to N190.48 billion in December of the same year. It dropped further to N142.93 billion in March 2024 and N132.87 billion by June 2024.

The downward trend continued with the debt stock falling to N126 billion in September 2024, N122.19 billion in December 2024, N118.21 billion in March 2025 and N105.82 billion in June 2025.

It stood at N95.51 billion in September 2025 before declining to N84.85 billion in December 2025 and N83.63 billion three months later.

The reduction has considerably altered Akwa Ibom’s position among Nigeria’s states regarding domestic debt.

As of June 2023, the state was the seventh most indebted state in Nigeria. By March 2026, it had dropped to 15th.

PREMIUM TIMES had reported that Akwa Ibom was the fourth most indebted state in Nigeria in 2017.

Debt servicing

The reduction in the state’s domestic debt has coincided with substantial spending on debt servicing under Mr Eno.

Akwa Ibom spent N11.64 billion on debt servicing between July and September 2023, according to the state’s third-quarter 2023 budget performance report.

It spent another N12.18 billion on debt charges in the fourth quarter of 2023.

The state’s audited financial statements show that debt servicing consumed N34.4 billion in 2024. In 2025, N22.33 billion was spent on debt servicing, representing a decline of N12.07 billion from the previous year.

The state has, however, not published a detailed budget performance report covering January to June 2026, limiting an assessment of its debt-service expenditure for the first half of the year.

Interest payments on bank loans have also declined under Mr Eno.

The state paid N9.49 billion in interest on bank loans in 2024, but the amount fell to N6.70 billion in 2025.

This contrasts with the period of the previous administration, when interest payments remained considerably higher.

A review of Akwa Ibom’s audited financial statements between 2015 and 2022 showed that the state paid N104.66 billion in interest to banks during the period.

The lowest annual interest payment recorded during the administration of former Governor Udom Emmanuel was N10 billion in 2020, during the COVID-19 pandemic.

The audited accounts also show that a notable portion of the loans obtained by the state during the period were from Zenith Bank where Mr Emmanuel had served as an executive director before becoming governor.

Revenue and borrowing

The debt reduction occurred during a period in which Akwa Ibom recorded significant inflows.

PREMIUM TIMES reported that the state received N2.934 trillion in revenue during Mr Eno’s first 38 months in office.

Despite Mr Eno’s repeated claims that his administration has not taken loans, an official document, the Budget Performance Report from his administration recorded N1.2 billion as loans/borrowing receipts in the third quarter of 2023. The amount appeared under the budget line item, “Direct Credit Substitute/Discounting Facility.”

It is unclear from the available document whether the N1.2 billion represented a fresh borrowing or a drawdown from an existing credit arrangement. The state government has not publicly provided sufficient details to establish the nature of the transaction.

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Liabilities remain

The decline in domestic debt does not mean that Akwa Ibom’s entire financial obligations have fallen to N83.63 billion.

The state’s audited financial statements show that its total financial liabilities stood at N135.3 billion as of 31 December 2025.

The liabilities comprised N79.59 billion in external loans, N50.61 billion in federal government bonds and N5.09 billion in internal loans.

The figure excludes contractors’ liabilities and accruals, which stood at N32.69 billion.

The different figures highlight the distinction between the state’s domestic debt stock and its financial obligations.

While the domestic debt position has fallen since Mr Eno took office, the state still carries obligations arising from loans, bonds and unpaid commitments.

The reduction in domestic debt nevertheless represents a noteworthy change from the debt position inherited by the Eno administration in 2023, particularly against the backdrop of the state’s rising revenues and continued expenditure on debt servicing.