Abia Debt Falls by ₦98.6bn as Otti Rules Out Direct Borrowing

By Titus Eleweke

Abia State Governor, Dr Alex Otti, has disclosed that the state’s reported debt stock declined from ₦147.2 billion in the second quarter of 2023 to ₦48.6 billion in the corresponding period of 2026, representing a reduction of ₦98.6 billion under his administration.

Otti made the disclosure during his October monthly media chat with journalists, where he provided updates on the state’s debt profile, foreign loan obligations and borrowing policy.

The governor explained that the debt inherited by his administration was significantly higher than the amount officially captured by the Debt Management Office (DMO), as outstanding pension obligations and salary arrears were excluded from the reported figure.

“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.

Addressing reports suggesting an increase in Abia State’s foreign debt obligations, the governor attributed the development largely to the drawdown of funds under existing multilateral loan arrangements, including the Abia State Integrated Infrastructure Development Project (ABSID) and the Rural Access and Agricultural Marketing Project (RAAMP).

He maintained that his administration had not undertaken any direct borrowing, distinguishing such borrowing from the disbursement of funds under previously established development financing arrangements.

“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.

Otti, however, clarified that his administration was not opposed to borrowing if financing became necessary for projects capable of generating long-term economic benefits for the state.

“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.

The governor’s latest disclosure builds on his earlier statements about debt repayment. In May 2025, Otti announced that his administration had repaid ₦72 billion in inherited debt, while maintaining that the state’s actual outstanding obligations were higher than the figures recorded by the DMO.

His October remarks come amid continued public scrutiny of government borrowing, debt servicing and the sustainability of state finances.

Although the figures disclosed by the governor indicate a substantial reduction in the reported debt stock, a comprehensive assessment of Abia 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 are attributed to Otti’s October media chat and have not been independently reconciled with the DMO’s state-level records for the two periods.