By Damilare Adeleye
The Abia State Government under the leadership of Dr Alex Otti has announced that it slashed its inherited debt from N191bn to approximately N48bn in just under three years of Governor Alex Otti’s administration.
The General Manager of the Abia State Debt Management Office, Dr. Benson Nwaigburu, disclosed this development, describing it as a significant milestone in fiscal governance.
He cited prudent leadership, transparency, and disciplined economic management as the primary strategies behind the debt reduction.
Prior to Governor Otti’s assumption of office on May 29, 2023, the state’s finances were burdened by liabilities accumulated over several years.
This debt overhang had constrained development, limiting the government’s capacity to fund infrastructure, deliver essential services, meet financial obligations promptly, and boost investor confidence.
However, Dr. Nwaigburu stated that the current administration responded with reforms anchored on fiscal discipline, accountability, transparency, and strategic planning.
He noted that instead of taking on new loans, the government prioritized boosting internally generated revenue, plugging leakages, cutting wasteful spending, and channeling resources into critical sectors.
“These bold and deliberate actions have produced outstanding results,” Nwaigburu stated.
According to him, the state has repaid over N142bn of the inherited debt without resorting to fresh borrowing, bringing the outstanding balance down to about N48.4bn.
This represents roughly 74.3 percent of the total debt inherited by the administration.
Dr. Nwaigburu added that this development places Abia among the states making the most measurable progress in debt reduction and fiscal responsibility since 2023.
He stressed that settling more than 70 percent of inherited liabilities within such a short timeframe is a strong fiscal performance by sub-national standards, particularly at a time when many other states have sustained or expanded their debt profiles.
For many observers, he noted, the achievement demonstrates that sound economic policies can reverse even severe fiscal challenges. Dr. Nwaigburu said the debt reduction would free up resources previously committed to debt servicing, allowing the government to redirect funds toward development priorities.
He listed roads, schools, healthcare, pensions, salaries, youth empowerment, security, and broader economic growth as the sectors expected to benefit from the improved fiscal space.
He added that a lower debt burden would also enhance investor confidence, as businesses tend to favor jurisdictions with stable finances, predictable policies, and responsible governance.
“The people of Abia State are witnessing governance driven by results, not excuses,” he added.