Former Abia Finance Commissioner Alleges Manipulation of Debt Figures in DMO Report

UMUAHIA— Former Abia State Commissioner for Finance, Obinna Oriaku, has accused the current state government of manipulating debt repayment figures submitted to the Debt Management Office (DMO), creating what he described as a “false impression of sound financial management.”

The allegation follows last week’s release of the DMO’s latest report on state and federal debt profiles. While acknowledging a general reduction in domestic debt among states, Oriaku argued that some figures, particularly those concerning Abia State, do not reflect realities on the ground.

Disputed Debt Claims  

According to Oriaku, the Abia State Government’s claim of repaying N142 billion in domestic debt is inconsistent with verifiable obligations. He noted that the DMO’s September 2024 report lists Abia’s total domestic debt at N89 billion, while the state’s external debt stood at $107,163,236.44 as of December 2025.

“The attached DMO report shows Abia’s total domestic debt at N89 billion. Why the deceit?” Oriaku queried, adding that the government “either out of ignorance or deliberate manipulation decided to ignore the external loan component of $107 million.”

He argued that domestic debt covers obligations to contractors, civil servants, pensioners, and other government entities. Citing a KPMG audit commissioned by Governor Alex Otti’s administration in May 2023, Oriaku said the state inherited a credit balance of N4.3 billion in official accounts with Union Bank and UBA.

“Therefore, the so-called N142 billion debt repayment presents a narrative that does not reflect the reality in today’s Abia State,” he said.

Unpaid Obligations Cited

Oriaku stated that no known contractor from previous administrations has been paid since the current government took office, alleging an official policy to block such payments. He added that Governor Otti last month confirmed setting up a committee to review N65 billion in outstanding gratuity owed to pensioners dating back to 2002.

He contrasted Abia’s position with neighboring states, noting that Imo State used N83 billion to clear arrears dating back to 2005, Enugu paid N24 billion to reduce gratuity obligations from 2010, and Anambra settled N7 billion in arrears from the Willie Obiano administration.

“Over 35% of pensioners in Abia are currently not being paid pensions. Many have been verified but are yet to receive payment, some as far back as November 2023,” Oriaku claimed.

Questions on DMO Reporting Process

The former commissioner said the DMO does not independently fact-check quarterly submissions from states on contractor payments, salaries, pensions, and gratuities. 

“The DMO in Abuja did not anticipate that any responsible government would manipulate and manufacture figures to mislead Abians and Nigerians. It is generally expected that government officials will report their domestic debt sincerely,” he said.

He challenged the government to provide evidence of payments to old contractors, inherited pension debt, and government-to-government obligations from the CBN, noting that KPMG confirmed the state owed no commercial bank as of May 2023.

Revenue and Spending Concerns

Oriaku stated that Abia has received about N1.6 trillion in revenue as of March 2026, including local government allocations, but argued this has not translated into iconic projects or improved worker welfare. 

“Some Abia workers earn about N23,000 monthly, compared to about N104,000 being paid in Imo State,” he said.

He questioned the discrepancy between the state’s reported N49 billion outstanding domestic debt and the acknowledged N65 billion gratuity liability: “Where do we situate the unpaid gratuity of N65 billion, beyond other verifiable unpaid debt, if N49 billion is the only outstanding debt of the state as reported? This has exposed fraud and manipulation in the summation of outstanding debts of Abia State.”

External Debt and Accountability

While the domestic debt figures are disputed, Oriaku noted that Abia’s external debt increased from $105,229,456.09 to $107,163,236.44 according to the DMO. He alleged this aspect was “ignored and deliberately downplayed” in favor of “fabricated figures just to project a favourable image.”

“It is clear that Abia State Government did not use N142 billion to pay down any debt in reality. This figure appears to be presented as window dressing in relation to the full report on Abia State’s finances,” he said.

He concluded: “We must continue to hold this government accountable. They have concluded that Abians are fools and will never question their manipulations.”

_Obinna Oriaku served as Abia State Commissioner for Finance from 2015 to 2019._

_The Abia State Government had not responded to the allegations as of press time._