Akwa Ibom Clears N39.8bn Bank Debt, Slashes Gratuity Backlog in Fiscal Reset

The Akwa Ibom State Government says it has fully repaid N39.831 billion in inherited commercial bank debts, describing the move as a major milestone in its sweeping financial reforms.

Commissioner for Finance, Emem Almond Bob, disclosed this at a media briefing in Uyo, outlining what he termed a comprehensive overhaul of the state’s fiscal management architecture.

According to him, the cleared liabilities covered both principal and accrued interest, effectively freeing the state from commercial bank obligations accumulated by previous administrations.

Beyond debt liquidation, the government has reduced the backlog of gratuities owed to retired civil servants from N110 billion to N80 billion as of December 2025.

Bob said the state also strengthened its investment base, growing its portfolio from N6 billion to N10 billion and earning N260.646 million in returns by June 2025.

He noted that Akwa Ibom now prepares and publishes annual financial statements in line with international best practices on transparency and accountability, while ensuring prompt payment of salaries and pensions.

Annual Public Financial Management assessments have been institutionalised, he added, alongside comprehensive staff and pensioner verification exercises. The process uncovered over 3,000 ghost workers, creating fiscal space for fresh recruitment.

The government has also implemented a full Treasury Single Account system, with all internally generated revenue routed through the AkwaRemit platform into the state’s consolidated account.

On procurement reforms, audits were conducted across ministries, departments and agencies to guarantee value for money, while personnel received training on sustainable procurement procedures.

To enhance credibility with development partners, the state now publishes annual Debt Sustainability Analysis reports and quarterly debt profiles.

In terms of external funding, the commissioner said the state secured a $3.585 million drawdown under the State Action on Business Enabling Reforms programme and €500,000 under the Nigeria Erosion and Watershed Management Project for flood and erosion control.

He further revealed that N321.8 million had been disbursed as housing loans to 212 civil servants. Additionally, the state has repaid $3.174 million out of the $7.805 million owed under the Afrexim credit facility to Ibom Power, with repayments continuing quarterly.

Maintaining over 85 per cent budget performance, Bob said the administration executes only approved projects and has deepened citizen participation in the 2025 and 2026 budgets, many of which were nominated by residents.

He said the reforms have repositioned the state’s finances to drive the administration’s ARISE Agenda and broader development priorities.