Politics

Despite the Q1 debt pressure, the state recorded significant long‑term fiscal gains. By October 2025, Governor Ahmadu Umaru Fintiri announced that Adamawa’s annual IGR had risen from N6.2 billion in 2019 to N16.2 billion in 2025, representing a 161 per cent increase driven by digital reforms, improved transparency, and fiscal discipline. On the debt front, the state reduced its domestic debt from N128 billion in December 2023 to N75 billion by September 2025 – a decline of N53 billion or 41.5 per cent. External debt edged marginally lower from approximately $100.9 million to $100 million over the same period. The reduction was attributed to aggressive management of local borrowings and enhanced federation account revenues following federal subsidy removal and foreign exchange reforms.

In the first quarter of 2025, Adamawa generated N9.12 billion in Value Added Tax (VAT) and received N21.13 billion in VAT allocations, ranking sixth among the 19 northern states and 15th nationwide for the period. The state’s fiscal improvement was reflected in the 2025 State Performance Index, where Adamawa surged from 26th position in 2024 to 5th nationally, driven by higher capital spending and clearer financial disclosure.

While the state’s long‑term IGR growth and debt reduction efforts are positive, the Q1 2025 debt‑service‑to‑IGR ratio of 206.9 per cent highlights continued fiscal strain. Projections for 2026 indicate a 170.56 per cent increase in public debt service, from N29.19 billion in 2025 to N78.99 billion in 2026, though the state is not expected to borrow new funds during that period. As of the 2025 budget review, the state had generated N235.34 billion (37.9 per cent of projected revenue) by September 30, 2025, while N189.51 billion had been expended on personnel costs, overheads, and capital projects. The Adamawa State Board of Internal Revenue has yet to release official reports for the second, third, and fourth quarters of 2025. Until then, the Q1 data offers the most detailed available snapshot of the state’s quarterly fiscal health for the year.

By: sadmohd25@gmail.com | Published: November 1, 2026

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