Abia Has Cut Inherited Debt by 75%, Channels 80% of Budget to Capital Projects – Otti

 Abia Has Cut Inherited Debt by 75%, Channels 80% of Budget to Capital Projects – Otti

Abia State Governor, Dr. Alex Otti, has said his administration has reduced a substantial portion of the debt it inherited while maintaining an aggressive infrastructure development programme across the state.

Speaking during an exclusive interview on Arise Television, which was monitored by Media Today Correspondent, Otti said his administration inherited debts totalling about ₦191.2 billion, including contractor liabilities, pension arrears and obligations to multilateral organisations.

According to the governor, the administration has reduced part of the debt burden significantly, with the component he referenced as having stood at about ₦148 billion now reduced to approximately ₦48.4 billion.

“We’ve actually reduced that debt to about ₦48.4 billion. So we’ve taken almost 75% of that debt out,” Otti said during the interview.

The governor linked the administration’s ability to service inherited obligations while executing infrastructure projects to strict budgeting and expenditure controls.

He said the state deliberately reserves at least 80% of its annual budget for capital expenditure, leaving approximately 20% for recurrent costs.

Otti explained that the policy has allowed the government to direct substantial resources into roads, schools, hospitals, environmental improvement and other infrastructure projects.

“We said no less than 80% of our budget will go into capital expenditure,” he said, adding that the capital allocation reached about 82% in one budget cycle.

Abia State’s official 2026 budget figures support the governor’s description of the capital-heavy fiscal policy. The state government’s published budget puts total expenditure at ₦1.016 trillion, with ₦811.8 billion — about 80% — allocated to capital projects and approximately ₦204.4 billion to recurrent expenditure.

Otti also identified reduction in the cost of governance as a major component of the administration’s financial strategy.

According to him, recurrent spending has been deliberately contained within roughly 20% of the budget despite increases in the minimum wage and other personnel obligations.

The governor said his banking and financial management background had contributed to the administration’s approach to managing public finances, although he stressed that planning and expenditure discipline remain central to the government’s strategy.

The infrastructure programme has placed particular emphasis on road rehabilitation and reconstruction. During the interview, the presenter cited about 450 roads as having been completed or undertaken, while Otti said financial discipline had enabled the government to continue investing in infrastructure while addressing inherited liabilities.

Otti maintained that the state’s capital-intensive budget model is not temporary but part of a broader effort to create infrastructure capable of supporting long-term economic growth.

The governor argued that governments must prioritise productive investment over consumption if they hope to build resilient economies.

For Abia, he said, that means continuing to invest heavily in infrastructure, education, healthcare and other services while keeping the cost of government under control.