Akwa Ibom Clears N39bn Loans, May Borrow Fresh Funds

Akwa Ibom State has secured a clean bill to borrow from Nigerian commercial banks for development.
This followed the clearance of all outstanding loans running into N39.831 billion inherited from the immediate past administration of Udom Emmanuel.

LEADERSHIP gathered that in the last two years, the administration of Governor Umo Eno, had not taken any loan for projects and other emergencies as President Bola Tinubu, according to the governor, had pumped liquidity to subnationals for socioeconomic development.

At a joint press conference held at the State Secretariat with the commissioner for Information, Hon. Aniekan Umanah, the commissioner for Finance, and coordinating commissioner of Special Duties, Emem Bob, said the government had not foreclosed taking loans, but must be seen as very necessary before taking such facilities.

He disclosed that out of the N39.831 billion paid, the principal was N34.533 billion, while the interest stood at N5,298 billion.

“We could all recall that as at 29th May, 2023 when this Administration, began its term, the new Administration inherited a commercial-bank debt of 34.533 billion from the previous administration as a result of the out-standing balance of N79.496 billion contracted by that administration which full repayment was pending.

“After a thorough review and negotiations, this Administration of His Excellency, Umo Eno, has fully cleared the debt as at last month of November, 2025. The total amount paid was N39.831billion. The interest reflects the cost of borrowing over the two-year period and the accrued penalties that were settled in full,” ‘he said.

Aside the commercial banks’ debt settlement, out of the N110 billion backlog of gratuities also inherited since 2012, the present administration has within the time in office paid N76.3billion, clearing in the process backlogs to March, 2021.

According to him, this was possible due to financial discipline and management by the present government without disrupting essential services or ongoing development projects.

The commissioner, however, reiterated the governor’s resolve not to get loan from commercial banks and would rather focus on seeking reforms to enhance the State’s Internally Generated Revenue (IGRs).

“Key initiatives Include the Akwa Ibom State Geographic Information System (AKWAGIS), which will be utilized to improve electronic Certificate of Occupancy (e-C of O) processes and land digitisation, promoting greater transparency and efficiency, as well as the new Digital Electronic IGR Platform (AKWAREMIT) to enhance full operationalization of Treasury Single Account (TSA).

“These efforts are anticipated to lead to expansion of the revenue base, closure of financial leakages, and improvement in IGRs,” he stressed.

Also, Umanah, explained that the burden of servicing loan facilities forced his boss to be more prudent in managing funds accrued to the state from the centre, adding that “borrowing from any commercial bank was akin to working for the bank due to accruable interests generation.”