Abia State Governor, Alex Otti, has said the state’s debt stock has declined from N147.2bn in the second quarter of 2023 to N48.6bn in the corresponding period of 2026, representing a reduction of N98.6bn.
Otti disclosed 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.
He also expressed satisfaction that the state emerged second in the 2025/2026 climate governance ranking.
According to the governor, the debt inherited by his administration was significantly higher than the amount officially captured by the Debt Management Office, as outstanding pension obligations and salary arrears were not included in the reported figure“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,” 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.
These arrangements include the Abia State Integrated Infrastructure Development Project and the Rural Access and Agricultural Marketing Project.
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 arrangementsI am sure you have seen a report that said we have increased our loan book in terms of foreign borrowing,” he explained.
“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.”
The governor, 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 is no direct borrowing by the government,” he said. “But that doesn’t mean we won’t borrow if it becomes absolutely necessary. We will borrow for regenerative projects, at the right time.”
Otti further announced that Abia State had emerged second in the 2025/2026 climate governance ranking, describing the recognition as an indication of the positive impact of his administration’s environmental and climate-related initiatives.
He attributed the state’s performance partly to interventions such as the introduction of green shuttle buses, adding that his government would sustain efforts towards environmentally responsible development.
