Gov. Otti repays ₦142bn inherited debt

By Damilare Adeleye

The Abia State Government has announced a major fiscal milestone, revealing it has slashed its inherited debt from ₦191 billion to approximately ₦48.4 billion in under three years of Governor Alex Otti’s administration.

Dr. Benson Nwaigburu, the General Manager of the Abia State Debt Management Office, disclosed that the state has successfully repaid over ₦142 billion, roughly 74.3% of the total debt inherited upon taking office on May 29, 2023. Remarkably, Nwaigburu noted that this reduction was achieved without resorting to fresh borrowing.

The administration’s strategy centered on plugging financial leakages, cutting wasteful spending, and significantly boosting Internally Generated Revenue (IGR).

“These bold and deliberate actions have produced outstanding results,” Nwaigburu stated, adding that Abia now stands out as a model for fiscal responsibility among Nigerian sub-nationals.

This achievement marks a radical shift in Abia’s economic trajectory. For years, the state’s finances were crippled by liabilities that hindered infrastructure development and led to chronic delays in salary and pension payments.

By clearing over 70% of these obligations, the Otti administration is effectively freeing up billions of naira previously earmarked for debt servicing.

This newly created “fiscal space” is expected to be redirected toward the administration’s signature projects in road construction, healthcare, and education.

Furthermore, the reduction in debt improves the state’s creditworthiness, making it a more attractive destination for foreign and domestic investors who prioritize regions with stable and predictable financial management.