Anambra State has sought N70 billion from the stabilisation fund to tackle insecurity, erosion, infrastructure deficits and mounting pressure on public services, as economic disruptions threaten livelihoods, government revenue and investor confidence.

The request, presented to the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) in Abuja, comes as the state grapples with more than 1,000 erosion sites, rising public expenditure and disruptions to commercial activities across its major economic centres.

Presenting the state’s case, the Secretary to the State Government, Chiamaka Nnake, said the proposed funding would support priority investments in security, environmental protection, healthcare, education, agriculture, solid minerals and tourism.

She disclosed that Anambra, with an estimated population of 8.9 million, a gross domestic product (GDP) of approximately $12.7 billion and a projected 2026 budget of N766 billion, had increased its internally generated revenue (IGR) from about N2.2 billion to N7.2 billion.

However, she identified insecurity, flooding, erosion, inflation and rising public service costs as major constraints on the state’s finances and economic development.

Nnake also said sit-at-home orders and restricted movement had disrupted commercial activities, weakened government revenue and undermined investor confidence in an economy driven by commercial and industrial centres such as Awka, Onitsha and Nnewi.

The request is now before RMAFC’s Indices and Disbursement Committee for technical assessment. The committee said it would scrutinise the state’s financial records, project costs, feasibility and expected socioeconomic benefits before making any recommendation.

A major component of Anambra’s funding request is environmental protection, with the state estimating that about N170 billion would be required to address identified critical erosion sites.

According to Nnake, more than 1,000 erosion sites have been identified across the state, affecting 146 communities at varying levels.

The scale of the problem raises concerns about the potential destruction of homes, roads, public infrastructure and economic assets, as well as the displacement of residents and disruption of commercial activities.

The state said it had undertaken interventions covering erosion control, flood management, road rehabilitation, land reclamation, waterway clearance and tree planting. It had also introduced restrictions on sand mining around vulnerable locations.

However, the estimated cost of addressing critical erosion sites underscores the scale of the financing challenge confronting the state.

Security was another priority in the state’s presentation, with Nnake arguing that additional funding would strengthen efforts to protect lives and property, restore commercial activity and improve the investment climate.

She cited the enactment of a Homeland Security Law, the establishment of a state security outfit and collaboration through a joint task force as measures already taken by the government.

The proposed intervention would support the procurement of operational vehicles, surveillance and communication equipment, personnel training and improved coordination among security agencies.

For a state whose economy depends heavily on commerce, manufacturing and the movement of goods, sustained insecurity and restrictions on movement could undermine business operations, employment and revenue generation.

The SSG also highlighted the growing cost of maintaining the state’s social intervention programmes, including free antenatal care and delivery services and free education from nursery to Senior Secondary School Three.

She said the free maternal healthcare programme had supported more than 206,000 deliveries, including 642 Caesarean sections, at no cost to beneficiaries.

The government had also recruited 8,415 teachers, increasing the need for classrooms, learning materials, medical personnel, healthcare equipment, medicines and other essential services.

While the programmes are intended to widen access to healthcare and education, Nnake said sustained investment was necessary to maintain service quality and meet growing demand.

Beyond addressing immediate fiscal and infrastructure pressures, the state said the proposed funding would support economic diversification through agriculture, solid minerals and tourism.

Nnake disclosed that Anambra had distributed more than 2.3 million coconut and oil-palm seedlings but required additional investment in processing, storage, irrigation, cold-chain facilities and market access to raise productivity, reduce post-harvest losses and create jobs.

She also identified kaolin, bentonite, lignite, silica sand, gypsum and laterite among the state’s mineral resources, alongside petroleum-related opportunities.

However, she said geological surveys, processing facilities and supporting infrastructure would be necessary to attract investors and translate these resources into productive economic activity.

Tourism was identified as another potential source of employment and revenue, with the state citing Agulu Lake and other natural and heritage attractions. Improved access roads, visitor facilities and supporting infrastructure, she said, would help unlock the sector’s potential.

Speaking during the technical session, the committee chairman and Lagos State representative, Prof. Olusegun Adekunle Wright, said the Stabilisation Fund was an important fiscal intervention mechanism designed to provide assistance in deserving circumstances, subject to established guidelines, available resources and the required approval processes.

He explained that the commission required requesting states to make formal presentations before conducting on-the-spot assessments of proposed projects.

Wright stressed that the committee would examine the credibility of the state’s financial records, the viability and estimated costs of its projects, implementation requirements and expected benefits to residents.

He cautioned that the technical review did not amount to approval, adding that the request remained subject to further scrutiny, verification and possible recommendations to the commission’s plenary.

The Commissioner representing Anambra State, Dr. Enefe Ekene, welcomed the committee’s observations, saying they would help the state refine its presentation ahead of the proposed visit to Anambra.

The outcome of the review will determine whether the state’s N70 billion request advances through the commission’s approval process.