Governor Alex Otti says his administration has reduced the state's reported debt stock by N98.6bn in three years, denies taking fresh direct loans and explains the rise in foreign debt obligations.

Abia State Governor, Alex Otti, has announced that the state's reported debt stock has fallen from N147.2bn in the second quarter of 2023 to N48.6bn in the corresponding period of 2026.

The governor said the reduction represented a decline of N98.6bn, attributing the development to his administration's efforts to settle inherited financial obligations and improve the state's debt position.

Otti disclosed this during his monthly media chat with journalists in October, where he addressed concerns surrounding Abia's domestic and foreign debt profile, the government's borrowing policy and its performance in environmental governance.

According to him, the N147.2bn debt figure recorded when he assumed office in 2023 did not reflect the state's full financial liabilities because certain outstanding obligations, including unpaid pensions and salary arrears, were not captured in the Debt Management Office's official records.

He explained that despite these additional liabilities, the reported debt stock had dropped significantly to N48.6bn by the second quarter of 2026.

"As at Quarter 2, 2023, we were at N147.2bn, 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 N48.6bn. That means more than N90bn has been paid off," the governor said.

Otti explains increase in foreign loans

The governor also addressed reports suggesting that Abia State's foreign debt obligations had increased under his administration.

He attributed the development largely to the withdrawal of funds from previously approved multilateral development financing arrangements, rather than fresh direct borrowing by the state government.

Otti specifically mentioned the Abia State Integrated Infrastructure Development Project (ABSID) and the Rural Access and Agricultural Marketing Project (RAAMP) as some of the programmes under which loan funds were being accessed.

He explained that the disbursement of funds from existing loan facilities should not be confused with the government securing entirely new loans.

"I am sure you have seen a report that said we have increased our loan book in terms of foreign borrowing. I believe it is the ABSID that we have drawn down, and then some other multilateral loans, including the RAAMP, that are being drawn down," he stated.

Why Abia may still borrow, Otti reveals

Despite emphasising his administration's position against unnecessary borrowing, Otti clarified that his government was not completely opposed to taking loans.

He maintained that borrowing could become necessary if the funds were directed towards projects capable of generating long-term economic benefits and supporting the state's development.

The governor, however, insisted that his administration had not undertaken any direct borrowing so far, adding that any future decision to access loans would depend on the state's needs and the potential benefits of the proposed projects.

"So far, there is 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.

Abia ranks second in climate governance

Beyond the state's financial position, Otti also expressed satisfaction with Abia's performance in the 2025/2026 climate governance ranking, where the state emerged second.

He described the recognition as an indication of the progress being made through his administration's environmental and climate-related policies.

The governor identified the introduction of green shuttle buses among the initiatives contributing to the state's environmental efforts.

He said his administration would continue implementing policies aimed at promoting environmentally responsible development and reducing the impact of activities that contribute to environmental degradation.

The governor's latest disclosure places Abia's debt management and development financing at the centre of public attention, particularly as residents continue to assess the state's financial obligations, infrastructure projects and the use of public resources.