As the Federation Accounts Allocation Committee (FAAC) disburses higher allocations to states and the Federal Capital Territory (FCT), their external debt levels are nearing the $1 billion mark. This rise in debt comes amid ongoing discussions about fiscal management and the sustainability of state finances. In a strategic move to address an outstanding obligation of approximately $800 million to the International Monetary Fund (IMF), authorities are considering a bond issuance as a mechanism for repayment. This development highlights the increasing reliance on capital markets to manage debt obligations, particularly as states navigate the complexities of revenue generation and expenditure. The current financial landscape reflects a heightened sentiment around debt management, with stakeholders closely monitoring the implications of these fiscal strategies on broader economic stability.