Abia State Governor, Dr. Alex Otti, has said his administration has reduced the state’s reported debt stock from ₦147.2 billion in the second quarter of 2023 to ₦48.6 billion in the corresponding quarter of 2026, representing a decline of ₦98.6 billion.
Otti disclosed this during his October edition of the monthly media chat with journalists, where he addressed the state’s debt profile, foreign loan obligations and his government’s borrowing policy.
The governor explained that the debt inherited by his administration was higher than the figure captured by the Debt Management Office (DMO), as certain liabilities, including outstanding pensions and salary arrears, were not reflected in the official records.
“As at Quarter 2, 2023, we were at ₦147.2 billion, and that did not include debts that were not reported to the DMO, like pensions and salary arrears. But as at Quarter 2, 2026, that number has declined to ₦48.6 billion. That means more than ₦90 billion has been paid off,” Otti stated.
Responding to reports suggesting an increase in the state’s foreign debt, Otti attributed the development largely to the disbursement of funds under existing multilateral financing arrangements, including the Abia State Integrated Infrastructure Development Project (ABSID) and the Rural Access and Agricultural Marketing Project (RAAMP).
He maintained that the drawdown of funds from these facilities should not be confused with fresh direct borrowing by his administration.
“I’m sure you’ve seen a report that said we have increased our loan book in terms of foreign borrowing. I believe it’s the ABSID that we’ve drawn down, and then some other multilateral loans, including the RAAMP, that are being drawn down,” he explained.
The governor, however, clarified that his administration was not opposed to borrowing, insisting that any decision to take loans would depend on the necessity and long-term economic value of the projects to be financed.
“So far, there’s no direct borrowing by the government. But that doesn’t mean we won’t borrow if it becomes absolutely necessary. We will borrow for regenerative projects, at the right time,” he said.
Otti’s latest disclosure follows his May 2025 announcement that his administration had repaid ₦72 billion in inherited debt, while maintaining that the state’s actual liabilities exceeded the figures recorded by the DMO.
The governor’s comments come amid public scrutiny of state borrowing, debt servicing and the sustainability of government finances.
While the figures presented by Otti indicate a substantial reduction in Abia’s reported debt stock, a comprehensive assessment of the state’s financial position would require a detailed breakdown of repayments, outstanding foreign loans and other liabilities.
The ₦147.2 billion and ₦48.6 billion figures cited in this report are based on the governor’s statements during the October media chat and have not been independently reconciled with the DMO’s state-level records for the respective periods.
