Governor Alex Otti Clears 72 Billion naira Inherited Debt From Past Administration Without Borrowing
In a major revelation that underscores a shift in financial management and governance in Abia State, Governor Alex Otti has announced the clearance of 72 billion naira in inherited debt without securing any new loans or accruing fresh liabilities. This milestone was disclosed during the April edition of the Governor's Monthly Media Parley, "Governor Otti Speaks To Abians."
Governor Otti revealed that upon assumption of office in 2023, his administration inherited 138 billion naira in debt from the previous administration, according to records from the Debt Management Office (DMO). However, internal audits suggest the actual burden was even greater, factoring in outstanding salaries, pensions, and unpaid contractor fees.
As of December 2024, the DMO confirmed that the state's debt profile had dropped to 66 billion naira and 72 billion naira reduction in less than one year. This was accomplished without resorting to external or internal borrowing, a feat Governor Otti attributed to strategic fiscal discipline, ethical leadership, and strict adherence to transparency and accountability in government spending.
"This reduction didn't happen by accident,"Governor Otti stated. "It is the result of prudent financial management, blocking of leakages, and deploying state resources to areas of priority without waste or recklessness."
The Governor emphasized that despite undertaking numerous capital-intensive projects including road infrastructure, education, healthcare, and digital transformation his government has maintained a zero-borrowing policy, a bold departure from what he described as the "legacy of financial irresponsibility"that plagued past administrations.
He also used the platform to call for continued vigilance and community participation, especially in the area of security. According to him, "Without peace and security, development efforts may be undermined. We are asking our people to collaborate with security agencies and report any suspicious activity."
The development has been widely hailed as a testament to a new era of responsible governance in Abia State, restoring public confidence in government and laying the foundation for sustainable growth.
As Governor Otti continues to implement reforms and drive investment, Abians and observers nationwide are beginning to see the results of his administration's commitment to transparency, equity, and long-term economic planning.
