Ebonyi, a fast-growing state in the Southeast, has recently experienced a significant turnaround—from being an illustrative symbol of timidity to a potential tourist center.
Recent developments, such as the proposed tricycle assembly plant by Obi Cubana and international collaborations spearheaded by Alex Ekwueme Federal University Ndufu-Alike, hint at growing local and international investor interest. Yet a closer examination of key financial indicators reveals a more complex picture.
Between 2013 and 2024, there was a notable increase in the state’s Internally Generated Revenue (IGR) from ₦14.06 billion in Q2 2013 to ₦26.32 billion in 2024(National Bureau of Statistics). On the surface, this revenue growth appears impressive.
However, a closer look at the state’s GDP between 2013 and 2017 reveals a more nuanced picture. While the overall GDP increased, agriculture remained the dominant sector, with industrial contributions fluctuating. The industry sector peaked at ₦198,850.88 million in 2014 but declined to ₦157,977.53 million by 2017. By 2023, the GDP stood at ₦2.24 trillion, showing modest growth compared to previous years.
This modest change raises questions about whether the improvements in revenue are driven by actual business growth or are merely the result of increased borrowing. In fact, domestic debt surged by 36.78% and external debt by 38.33% between 2015 and 2019, suggesting that a significant portion of the rising IGR may indeed stem from loans rather than genuine economic activity.
Investor enthusiasm is visible through various initiatives as a matter of fact between 2022 and 2024, Ebonyi State actively sought to attract investors. The Ministry of Trade and Investment received 14 investment proposals from the Ebonyi International Scholars Association in collaboration with expatriates, yet these efforts have not yet materialized into substantial foreign direct investment.
According to the National Bureau of Statistics, Ebonyi did not record any FDI inflows by the third quarter of 2024, and its rankings in the World Bank’s Ease of Doing Business index remain disappointing. With specific rankings of 32nd for starting a business, 31st for dealing with construction permits, 24th for registering property, and 36th for enforcing contracts. The state’s business environment continues to struggle despite the promise of new projects.
One may wonder how funds are then generated to foot Ebonyi State Budgets, thus shifting the gaze to a much bigger concern; “Ebonyi’s heavy reliance on federal allocations”. For the proposed 2025 budget, approximately 33.64% of the total ₦396 billion budget is expected to come from the Federal Account Allocation Committee, amounting to roughly ₦133.4 billion. This isn’t just a new practice, In 2023, the state received ₦107.45 billion from FAAC—highlighting a persistent dependency on federal funds to meet budgetary needs.
At the same time, debt servicing continues to strain the state’s finances-although this shouldn’t come to you as a schock. In the first nine months of 2024 alone, Ebonyi allocated ₦8.46 billion to debt servicing, consuming about 22.4% of its recurrent expenditure and forcing further borrowing as expenditures surpassed revenues by 20.73%. Thus the persistent increase in debt rate.
Amid these fiscal challenges, the state has continued to invest heavily in infrastructure projects. In 2024 through 2025 alone, the government has taken up not less than 10 road construction projects. Some of the major road projects include; the Ukwuachi-Oshiegbe Road in Ezza North, the Umueziokwu-Nwegbu-Ugwu-Odida Onuafia-Amankwo Road in Onicha, and the TTC–Iboko Road in Izzi. Additionally, the Ezi-Akani Ukpa–Ngodo Road in Afikpo, Ogbodudu Street in Kpirikpiri (Abakaliki), just to name a few.
Or do I bore you with news on the underperforming airport, shopping malls, flyovers, and stadiums. While these developments might enhance the state’s image and improve transportation, they have yet to create widespread economic opportunities for local businesses and citizens.
In contrast, the unemployment rate remains high at 21.1%, and the government’s allocation for critical social services such as health, education, and welfare continues to be relatively low when compared to allocation for infrastructure raising doubts about whether the benefits of growth are truly reaching the populace.
Moreover, the lack of comprehensive and consistent data on key economic activities makes matters worse. Incomplete or missing data makes it difficult to assess the real impact of government policies, investments, and economic activities. The absence of reliable data might also be a factor in the discrepancies between the reported GDP and the actual business conditions in the state.
The big question remains: Is Ebonyi’s Growth an Illusion?
The evidence suggests that while there has been some improvement in revenue and infrastructure, the underlying economic benefits remain limited. The heavy reliance on federal funds, significant debt servicing costs, and the sluggish business environment indicate that the gains in GDP and IGR may not be translating into real prosperity for businesses and individuals.
Ebonyi now finds itself at a pivotal crossroads. The state can no longer afford the illusion of progress built on short-term projects and federal dependency. Instead, the future demands a bold transformation—a commitment to empowering local enterprises and unleashing the untapped potential of its agricultural heartland.
As the dust settles on outdated paradigms, one must ask: “Will Ebonyi dare to rewrite its own destiny, or remain ensnared by the promises of yesterday?” YOU DECIDE!
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