By NWAODU LAWRENCE

In a strong demonstration of fiscal discipline and administrative prudence, Imo State has recorded an extraordinary reduction in its debt profile over the past 18 months ? a development that signals renewed financial stability and strategic economic positioning; piloted by His Excellency Senator Hope Uzodimma, the Governor of Imo State.

According to official figures, between June 30, 2023, and December 31, 2024, Imo State?s external debt dropped from $77.8 million to $71.3 million, reflecting a $6.5 million reduction. This prudent move, beyond shrinking liability, enhances the state?s creditworthiness and reassures both investors and development partners of Imo?s economic direction.

In naira terms, the $6.5 million external debt servicing cost amounts to approximately N10.4 billion over the 18-month period ? or N578 million monthly.

However, it is on the domestic front that the most significant progress has been made. During the same period, the state reduced its domestic debt from N220.8 billion to N126.1 billion, a staggering N94.7 billion in repayments ? representing over 42% reduction in local liabilities. On a monthly average, this translates to a domestic debt servicing cost of N5.261 billion.

Altogether, Imo State has spent N105.1 billion on debt servicing (both foreign and domestic) within this 18-month timeframe ? averaging a monthly outlay of N5.839 billion.

For a state with a modest revenue base, such consistent and substantial debt servicing reflects a remarkable sacrifice and unparalleled commitment to financial reengineering. It also underscores a clear vision: to clean up the state's balance sheet, restore investor confidence, and pave the way for sustainable economic growth.

Observers say this display of fiscal responsibility and strategic debt management has already begun yielding dividends. The state is currently executing landmark projects such as:

The Assumpta Cathedral Three-Way Flyover Bridge,

The State Electricity Expansion Project,

The Orashi Free Trade Zone,

The Concorde Hotel restoration project.

The upgrading of the Sam Mbakwe Airport to an International Airport Status and Standard

The Atlantic Sea Access Investment, and

The IICC Mega Redevelopment Project.

All of these signal that Imo is not just managing its debt ? it is laying the groundwork for economic transformation.

While these debts were inherited from previous administrations, the current government has chosen not to dwell on blame. Instead, it has embraced the principle that government is a continuum and is tackling the challenge head-on ? turning a fiscal burden into a foundation for recovery.

In a country where many sub-national governments are still battling rising debts and deficits, Imo State?s performance stands out. It offers a model of how consistent, transparent, and committed fiscal management can reposition a state for growth and long-term prosperity.

For the people of Imo State and the generations to come, this is not just about numbers ? it's about building a legacy of responsibility, stability, and opportunity.

? Dr. Nwaodu Lawrence is a Development Economist.

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