Abia State Governor, Dr. Alex Otti, has disclosed that the state’s reported debt stock has 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.
Governor Otti made the disclosure during the October edition of his monthly media chat with journalists, where he provided an update on the state’s debt profile, foreign loan obligations and his administration’s borrowing policy.
According to the governor, 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 not included in 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 explained that the development was largely connected to the drawdown of funds from 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 so far, distinguishing such borrowing from the disbursement of funds under existing 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.
Governor Otti, however, clarified that his administration was not opposed to borrowing, provided such 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 remarks build on his earlier statements about debt repayment. In May 2025, Otti had announced that his administration had repaid ₦72 billion of inherited debt, while maintaining that the state’s actual outstanding obligations were higher than the figures recorded by the DMO. Vanguard News
His October disclosure comes amid continued public scrutiny of government borrowing, debt servicing and the sustainability of state finances.
Although the governor’s figures indicate a substantial reduction in the reported debt stock, the precise breakdown of repayments, outstanding foreign loans and other liabilities would be necessary for a comprehensive assessment of Abia State’s financial position.
The ₦147.2 billion and ₦48.6 billion figures are attributed to Governor Otti’s October media chat and have not been independently reconciled with the DMO’s state-level records for the two periods.
