Why the South East’s Prudent Debt Strategy Beats the South West’s Credit-Driven Growth
Recent data from Nigeria’s Debt Management Office challenges the belief that big loans equal progress. The South East now holds the lowest external debt in the federation. Its states owe an average of just $106.94 million each. By contrast, the South West carries $1.80 billion in foreign obligations—almost three times the East’s burden. Currency swings now make debt servicing painfully costly and divert funds from essential services. Rather than relying on foreign credit, eastern governors have focused on strict budget control, boosting internally generated revenue and forging public-private partnerships. They tapped diaspora funds and grassroots contributions to build roads, bridges and markets without mortgaging future tax receipts. As the 2025 financial year closes, the South East stands out for true fiscal mastery. Its model of self-funded infrastructure offers a roadmap for sustainable growth across Nigeria.
Use The App To Win ₦1m
Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.