Abia debt stock drops to N48.6bn – Otti

Abia State Governor Alex Otti announced that the state's debt stock has decreased from N147.2 billion in the second quarter of 2023 to N48.6 billion in the corresponding period of 2026. This reduction represents a remarkable N98.6 billion decrease. During a recent media chat, Otti highlighted the state's debt profile and borrowing policy, expressing satisfaction with the administration's achievements.

He noted that the debt inherited by his administration was significantly higher than what was officially reported by the Debt Management Office, as it did not include pension obligations and salary arrears. The governor also addressed concerns about an increase in Abia State's foreign debt obligations, explaining that it was mainly due to the drawdown of funds from existing multilateral loan arrangements, such as the Abia State Integrated Infrastructure Development Project and the Rural Access and Agricultural Marketing Project.

Otti confirmed that his administration has not undertaken any direct borrowing so far, distinguishing it from the disbursement of funds under existing development financing arrangements. He emphasized that the state's debt reduction is a result of paying off the accumulated debt, rather than increasing the debt through direct borrowing.