A Cable Index report revealed that external debt deductions from FAAC allocations of southeastern states hit the N8.6bn mark, with Enugu having the highest deduction in the region.
Enugu leads the way with a N2.48bn debt deduction from its FAAC. Imo State and Abia State followed suit with debt deductions of N2.09bn and N1.89bn, respectively. Ebonyi and Anambra States had minimal deductions of N1.08bn and N1.06bn, respectively.
The External debt deduction is a metric aligned with the federal allocations to Nigerian states, commonly known as the FAAC. It’s basically the Federal Government deducting a state’s external and sometimes domestic debt service obligations directly from a state’s FAAC allocations.
On a national index, the Southeast states fared moderately, with Enugu, the region’s heaviest deduction, ranking 16th. Lagos State, Kaduna State, and Edo topped the index with N26.38bn, N19.28bn, and N8.41bn, respectively.
External debt deductions matter because they show how much allocation a state is actually getting at the end of the day. A state might be receiving heavy allocations from the federal government, but is quietly grappling with high external or domestic debt repayments.
Delta Tops FAAC Allocation for 2025
Nigeria’s FAAC allocations come from many sources, with Oil revenue, company income tax, and value-added tax among the key sources. Delta State topped Nigeria’s Federation Account Allocation Committee (FAAC) list, receiving N542.44 billion between January and November 2025.
The oil-rich state, now under the ruling party, has embarked on some key road projects. The projects and initiatives are fuelled by the State Governor, Sheriff Oborevwori. Delta State is currently on the verge of balkanisation. The Delta North part of the state is to be named Anioma State.
The push for the actualisation of the sixth southeast state was dealt a blow. Its major proponent, Senator Ned Nwoko, lost the Primary election bid to Governor Ifeanyi Okowa in a landslide victory.
