Alex Otti cuts Abia debt profile by 75% after audit exposes hidden liabilities

Alex Otti,Abia State Governor inherited a ₦191,2bn debt profile upon taking office in May 2023, but has paid down over 75% of the burden without taking out new loans, his administration has revealed.

Speaking during an interview on Arise News, Otti explained that official figures initially underreported the state’s financial liabilities. A comprehensive audit uncovered backlogged salary arrears, decades of accumulated pensions, and unpaid obligations owed to state-owned institutions and health workers left behind by his predecessor’s administration.

Official records from federal debt management agencies originally reflected a lower debt figure. However, internal reviews revealed hundreds of billions of naira in off-book liabilities, including:

Through negotiations with civil service unions and retirees, the administration reached settlement terms, disbursing over ₦10bn in single-tranche payouts to settle long-standing pension claims.

Attributing the progress to plugging revenue leakages, enforcing expenditure discipline, and optimizing internal revenue generation, Otti addressed how the state funded the heavy repayments.

“Don’t bother yourself about where I’m going to find the money, because that’s my own area. The state is running very, very well, and we have not borrowed a single dime.” Gov. Alex Otti, speaking on Arise News

Forensic audits commissioned by the administration exposed past fiscal irregularities, including a ₦10bn outlay for an unbuilt airport project, which the state is actively pursuing for recovery.

Despite the debt clearance, Otti reaffirmed that his primary focus remains on infrastructure renewal, social services, and structural reforms to sustain the state’s fiscal health.

Athekame Kenneth is a politics, economy, and finance reporter whose work is anchored in sharp investigative storytelling. He brings analytical depth to every piece, drawing on a strong academic foundation that includes a degree in Economics, an MBA in International Trade, and a minor in Petroleum Economics from Lagos State University, Ojo. His reporting blends rigorous research with a keen eye for hidden truths, delivering stories that illuminate power, policy, and the forces shaping everyday lives.