Abia State Governor Alex Otti has reduced the state’s debt profile by 75% following an audit that uncovered hidden liabilities, according to his administration. The governor, who inherited a ₦191.2 billion debt upon taking office in May 2023, attributed the reduction to internal reforms and revenue optimization, emphasizing no new borrowing. During an interview on Arise News, Otti revealed that official records initially underreported the state’s financial obligations, which included backlogged salary arrears, decades of accumulated pensions, and unpaid obligations to state-owned institutions and health workers. The audit, conducted by the administration, identified ₦10 billion in pension arrears spanning 45 to 56 months, unpaid salaries at institutions like Abia State University Teaching Hospital, and contractor liabilities for unfinished capital projects misclassified as completed.
The administration resolved these liabilities through negotiations with civil service unions and retirees, disbursing ₦10 billion in single-tranche payments to settle pension claims. Otti credited the progress to addressing revenue leakages, enforcing expenditure discipline, and boosting internal revenue generation. “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,” he stated. Forensic audits also exposed a ₦10 billion outlay for an unbuilt airport project, which the state is pursuing for recovery. Despite the debt clearance, Otti reiterated his focus on infrastructure renewal, social services, and structural reforms to ensure long-term fiscal health.
Stakeholders have called for stronger grassroots initiatives to stimulate the Lagos economy, while discussions on Tinubu’s political legacy and an EU-backed health program in Kwara State continue. The governor’s administration has emphasized transparency and accountability, with the audit findings underscoring the need for rigorous fiscal oversight in public governance. The revelations highlight the challenges of inherited fiscal mismanagement and the complexities of restoring financial stability in Nigerian states.
The audit’s findings have sparked broader conversations about fiscal responsibility and the impact of historical governance on current economic conditions. While Otti’s administration has made significant strides, the case of Abia State illustrates the systemic issues facing many Nigerian states, where legacy debts and opaque financial practices often hinder progress. The governor’s approach, combining audit-driven reforms with strict fiscal controls, offers a model for addressing similar challenges elsewhere, though its long-term effectiveness remains to be seen.