Abia State Governor, Alex Otti, has revealed that the state’s debt profile has fallen from ₦147.2bn in the second quarter of 2023 to ₦48.6bn in the corresponding period of 2026, indicating a reduction of ₦98.6bn.
Otti made this known during his monthly media chat with journalists in October, where he discussed the state’s debt situation, foreign loan obligations and his administration’s borrowing plans.
The governor also announced that Abia State secured second position in the 2025/2026 climate governance ranking.
He explained that the actual debt inherited by his administration was considerably higher than the figure documented by the Debt Management Office (DMO), as outstanding pension liabilities and unpaid salaries were excluded from the reported amount.
“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.
Speaking on reports of a rise in the state’s foreign debt, Otti attributed the development mainly to the release of funds from previously established multilateral financing agreements.
Some of the projects covered by these arrangements include the Abia State Integrated Infrastructure Development Project and the Rural Access and Agricultural Marketing Project (RAAMP).
He insisted that his administration had not engaged in direct borrowing, explaining that the funds being accessed were disbursements from existing development financing agreements.
“I 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.”
However, the governor clarified that his government was not completely against borrowing, stressing that loans could be considered when necessary, particularly for projects capable of delivering sustainable economic benefits.
“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.”
On the state’s climate governance performance, Otti described Abia’s second-place ranking as evidence of progress made through his administration’s environmental and climate initiatives.
He particularly highlighted the introduction of green shuttle buses as one of the interventions contributing to the achievement, adding that his government remained committed to promoting environmentally sustainable development.