Analysing Abia State Government’s recently published Q2 2025 Financial Report Abias former commissioner for Information Hon. Obinna Oriaku has a damning revelation of a staggering N75 billion increase in external loans and a monthly allocation averaging N38 billion. While the report—made public under the SFTAS/World Bank-mandated transparency framework—details revenue growth and capital spending it exposed troubling inconsistencies, opaque financial practices, and a lack of tangible results to match the massive inflows.
According to Oriaku the data, covering the April–June period, raises urgent questions about Governor Alex Otti’s fiscal management and the administration’s commitment to accountability. With over N287 billion in reported loans, grants, and revenue, yet little visible capital impact, calls are growing louder for the government to explain where the money is going—and why core obligations like pension payments and salary arrears remain unmet.
Details……..
Abia’s Q2 Financial Report: N75bn Surge in External Loans as Monthly Allocation Hits N38bn
The Abia State Government has released its Q2 Financial Report (April–June 2025), now available on the official website abiastate.gov.ng. The data paints a concerning picture of spiraling external debt and unclear financial priorities, raising fresh questions about transparency and accountability under the Otti administration.
As I have repeatedly maintained, the Abia State Government seems to operate under the assumption that the people are either not intelligent enough to comprehend basic financial data or too mentally fatigued to probe beyond surface-level narratives. Their strategy appears calculated: bury essential fiscal information in a deluge of technical jargon and selective transparency, hoping that the masses will remain docile and distracted, applauding them simply for not being as bad as previous administrations.
Thanks to the SFTAS/World Bank programme, which compels all Nigerian states to publicly release their quarterly performance reports using a standardized template, we now have some access to data. Otherwise, this government might have continued to operate like a cult, guarding financial information and rationing it only to the most trusted inner circle.
According to the just-published Q2(April to June) 2025 report:
• Total Revenue FAAC&IGR(Q2): N114 billion
(Compared to Q1’s N84 billion, an increase of N30 billion)
• Average Monthly Allocation (Q2): N38 billion
• Internally Generated Revenue (Q2): N13.2 billion(Down from Q1’s N14 billion, an average of N4.6 billion monthly)
The IGR includes every naira collected from school fees including change-of-course charges from all institutions in Abia, as well as revenue from every hospital and health centers.
• Personnel Cost: Remains at N14 billion for the quarter(Roughly N4.6 billion monthly)
What remains baffling is how the government managed to spend N33 billion monthly total revenue excluding salaries and pensions.
Even more astonishing, the report shows that about N75 billion was expended on capital projects in Q2 alone. Which projects gulped N75b within the three months .
Under the sub-head “Capital Development Fund (CDF) Receipts capital funds and grants/donations ”, a total of N180billion and N106 billion is recorded totalling N287billion, suggesting a corresponding surge in total loans/grants and donations .
A comparison of external loan figures shows:
* 2023 (pre-Otti administration): N80,094,222,458.03
* As of 31st December 2024: N155,796,423,823.01
This reflects an increase of roughly N75 billion including N114b (FAAC &IGR) and N287b as loans ,donations and Grant’s alI sums up the total funds available to the Government of Abia state within the period under review.(April to June 2025 QTR2)
All these contradicts the current administration’s claim of having paid down N78 billion in domestic debts while ignoring the increase in extanal and domestic loans of the state since May 2023 .Despite these claims, pensioners, contractors, and parastatal employees are still waiting to receive their full outstanding salaries and pensions.
For example, the government claimed it inherited N18 billion in unpaid parastatal salaries including 11 months owed to ABSU lecturers yet, to date, many staff members have only received partial payments of this arrears. A professor owed N400,000 monthly arrears receives just N200,000 while the full amount is reported to the Debt Management Office Abuja (DMO) as paid.
According to the signed financial report prepared the Accountant General and approved the Commissioner for Finance, new and old external loans that grew 2024 include:( Check attached Financial report)
• Nigeria for Women Project: N14.675 billion (dollar equivalent @$1,532)
• Accelerated Nutrition Fund: N7.55 billion
• RAAMP (Rural Access & Agricultural Marketing): Increased from N3.09 billion in 2023 to N5.58 billion in 2024.
Many of these are legacy loans before May 2023, but disbursements have ramped up due to recalibration with current exchange rates.
Despite the huge inflow of funds, thanks to the APC-led Federal Government and post-subsidy removal interventions ,the expected economic relief and visible capital impacts remain elusive. Where are the impactful projects funded these billions? The application of this funds were expected to cushion the harsh impact of subsidy removal and reduce the cost of living.
Rather than addressing these serious concerns, the Governor’s aides often resort to personal attacks when questions of transparency are raised. This is a government touted as technocrat-led; it should not be failing on basic public sector accounting principles. At this point, it is not a question of competence, but a deliberate culture of secrecy and deceit.
I had earlier advised media aides to consult the Commissioner for Finance or the Accountant General before issuing public statements on technical issues like this that ultimately embarrass the very government they are trying to defend.
As we await further sectoral breakdown of Q2 performance, the public must remain vigilant. These numbers matter not just for analysis, but for the future of Abia.
Let’s keep our eyes open.
©️Ekwedike
Hon. Obinna Oriaku, is a celebrated former commissioner for finance in Abia State.
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