Recent data from the Debt Management Office revealed that Anambra State reduced its domestic debt by 60% in one fiscal year. The year in question is 2024 to 2025, and Anambra sits at the top of the national index for the highest reduction in the country.
Anambra clinched the top spot with a 59.73% reduction, the highest in the southeast and the rest of the country. Imo, Abia and Ebonyi States followed closely, with reduction rates of 33.61%, 26.74%, and 25.58%, respectively.
Enugu State saw no reduction in domestic debt, with a 32.12% increase as the Mbah administration takes on huge bets. Other states of note include the FCT, which saw a 197.15% increase in domestic debt, and Kaduna State, which saw a 228.53% increase.
The data comes from Nigeria’s Debt Management Office and is reported by the Cable Index. Lagos State saw a 35.47% increase in domestic debt, while Rivers State finished with a paltry 3.96% increase.
Domestic debt is the portion of a government’s total public debt that is owed to lenders within its own country. Unlike external debt, which is borrowed from foreign banks or international bodies like the IMF and is usually denominated in foreign currencies. Domestic debt is typically denominated in the local currency, like the Naira.
Anambra’s strong performance can be attributed to the direction and experience of its Governor, Prof. Chukwuma Soludo. Soludo is a professor of economics and a former governor of the Central Bank of Nigeria. His experience in public finance is evident in the charts. Anambra State reduced its domestic debt more than any other state in the country.
Despite positive numbers, the Soludo Administration is criticised for low-quality projects. The projects are speculated not to stand the test of time. Regardless, he has taken bold steps in the leisure and retail sectors. The Solution Fun City and Ikenga Mall in Awka are good examples of his efforts in this field.
