Umo Eno saves ₦200bn through prudent fiscal reforms, debt-free project financing and stronger IGR growth in Akwa Ibom State

Akwa Ibom State Governor Pastor Umo Eno has disclosed that his administration has saved more than ₦200 billion in public project costs through stricter procurement processes, in-house cost estimates and enhanced financial controls, describing the achievement as part of a broader strategy to deliver greater value for taxpayers while avoiding new debt.

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Speaking on the administration’s financial stewardship after three years and two months in office, Governor Eno said the savings were realised by carefully scrutinising contract bids before approvals, ensuring that government projects reflected realistic market costs rather than inflated estimates.

The governor said the reforms have enabled the state to redirect resources into infrastructure, social programmes and strategic investments without resorting to borrowing.

“Through prudent financial management and rigorous scrutiny of project costs, we have saved over ₦200 billion that would otherwise have been lost to inflated contracts.

Those savings have been reinvested directly into projects that improve the lives of our people,” Governor Eno said.

The announcement marks a significant shift in the conversation around public spending in Akwa Ibom, placing greater emphasis on efficiency and fiscal discipline rather than the size of government expenditure.

Alongside the reported cost savings, the administration said it has cleared major inherited financial obligations.

According to Governor Eno, Akwa Ibom has repaid ₦35 billion in outstanding bank loans inherited from previous administrations and settled ₦87 billion in gratuity arrears owed to retired workers.

The combined ₦122 billion in liabilities had accumulated over several years and had remained a source of concern for pensioners and public sector employees.

Governor Eno maintained that the repayments were made while the state continued to fund capital projects across its 31 local government areas.

Perhaps the most striking aspect of the administration’s financial record is its claim that no new borrowing has been undertaken to finance government projects during the period under review.

“Within the last three years and two months, Akwa Ibom State has not borrowed a single naira to execute any project,” Governor Eno stated.

The administration said the debt-free approach has not slowed development.

Instead, the government disclosed that more than ₦734 billion has been committed to road construction and related infrastructure projects, arguing that savings generated from procurement reforms have been channelled into roads, bridges, schools, hospitals and other public facilities.

Officials explained that the reported Umo Eno saves ₦200bn achievement does not represent idle cash reserves but rather the difference between inflated project costs and the actual amounts approved after technical evaluation.

Those efficiencies, the government said, have expanded the state’s fiscal capacity to participate in strategic investments, including the proposed Ibom Deep Sea Port.

The deep sea port is expected to be financed through a tripartite arrangement in which the Federal Government provides 10 per cent, private investors contribute 50 per cent, and the Akwa Ibom State Government funds the remaining 40 per cent.

Governor Eno said prudent financial management would enable the state to meet its equity obligations without placing additional debt on future generations.

The administration also credited stronger revenue mobilisation for improving the state’s financial position.

According to figures from the National Bureau of Statistics and the Akwa Ibom State Internal Revenue Service, internally generated revenue increased from ₦15.96 billion in 2017 to ₦43.18 billion in 2023, before rising further to ₦75.7 billion in 2024.

The government attributed part of the improvement to enhanced tax administration and reforms designed to improve compliance.

A major turning point came with the implementation of the Treasury Single Account (TSA) on January 1, 2026.

Governor Eno said the policy, which requires all Ministries, Departments and Agencies to remit revenues into a single government account, increased monthly internally generated revenue from about ₦2 billion to approximately ₦12 billion within three months.

The governor described the increase as a breakthrough in blocking revenue leakages and strengthening financial accountability across government institutions.

The administration also acknowledged that higher statutory allocations from the Federation Account following national fiscal reforms have improved the state’s revenue profile.

As an oil-producing state entitled to the 13 per cent derivation fund, Akwa Ibom has benefited from increased federal allocations driven by higher oil revenues and the redistribution of subsidy savings.

Economists note that while stronger federal inflows have created additional fiscal space for many sub-national governments, sustaining long-term financial stability will depend on maintaining robust internally generated revenue and prudent expenditure management.

Governor Eno said the objective remains to build an economy capable of funding essential government services independently of federal allocations.

“Our goal is to build a self-sustaining state where internally generated revenue can comfortably meet critical obligations while federal allocations are channelled into long-term development projects,” he said.

Financial analysts say the administration’s model of combining procurement reforms, improved revenue generation and debt restraint reflects a growing emphasis on sustainable public finance among Nigerian states.

They also caution that preserving the gains will require continued transparency in contract awards, strict compliance with procurement rules and sustained oversight of public-private partnerships, particularly as the Ibom Deep Sea Port moves towards implementation.

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For Akwa Ibom, the reported savings, rising internally generated revenue and debt-free infrastructure financing present a fiscal model that the government believes can accelerate development while strengthening long-term economic resilience.