AERE Chairman Advocates Anambra's Zero-Borrowing Model

Hon. Dele Oye, Chairman of the Alliance for Economic Research and Ethics (AERE), called on the federal government to implement a disciplined fiscal management strategy similar to Anambra State's zero-borrowing policy.

In his policy statement titled “A Tale of Two Ledgers: Anambra’s Zero-Borrowing Masterclass vs. Nigeria’s Debt Spiral,” Oye contrasted Anambra's fiscal approach under Governor Chukwuma Soludo with the federal government's increasing reliance on debt.

He warned that Nigeria's rising debt profile threatens sustainable economic development. Oye noted that Soludo, who took office in March 2022, inherited a debt of about N109 billion but has maintained a zero-borrowing policy for over three years.

Anambra's budget prioritizes long-term investments, with 77% of the 2024 and 2025 budgets allocated to capital projects. This strategy has financed extensive infrastructure improvements without incurring new debt, supported by a 62% increase in Internally Generated Revenue (IGR) from 2019 to 2024.