Umuahia, Abia State, May 29, 2025 – Governor Alex Otti of Abia State has reaffirmed his administration’s commitment to fiscal discipline, stating that the state will only resort to borrowing when it is absolutely necessary.
Speaking during a town hall meeting with stakeholders in Umuahia, Otti emphasized that his government is focused on prudent financial management to ensure sustainable development without burdening future generations with debt.
Otti explained that while borrowing could be a viable tool for addressing critical infrastructure needs, his administration would prioritize internally generated revenue (IGR) and federal allocations to fund projects.
“We are not allergic to borrowing, but it must be a last resort, not a first option,” Otti said. “Every kobo borrowed must be tied to projects that will yield tangible economic benefits for Abia people.”
The governor highlighted ongoing efforts to boost the state’s IGR through reforms in tax administration and investment in key sectors like agriculture, technology, and small-scale industries.
He cited the rehabilitation of the Aba Industrial Layout and the planned Abia Innovation and Industrial Park as examples of initiatives designed to stimulate economic growth and reduce reliance on loans.
Otti’s remarks come amid concerns over rising debt profiles in several Nigerian states.
According to the Debt Management Office (DMO), Abia State’s total debt stood at approximately ₦192 billion as of December 2024, a figure Otti has pledged to manage cautiously.
He assured residents that his administration would maintain transparency in financial dealings, with regular updates on the state’s fiscal health.
Local economist Dr. Chidi Okoro praised the governor’s approach, noting that prioritizing fiscal responsibility could position Abia as a model for other states.
“Governor Otti’s stance on borrowing reflects a forward-thinking strategy. By focusing on sustainable revenue streams, Abia can avoid the debt traps that have hindered development elsewhere,” Okoro said.
However, some residents expressed mixed feelings. Mrs. Ngozi Kalu, a trader in Aba, urged the government to ensure that any borrowed funds are invested in projects that directly improve livelihoods, such as road repairs and market upgrades.
“We trust the governor, but we want to see results that touch our daily lives,” she said.
Otti reiterated his commitment to delivering people-oriented projects while maintaining a lean government.
He called on Abians to support the administration’s efforts by paying taxes promptly and holding leaders accountable.
The governor’s cautious approach to borrowing is expected to shape Abia’s 2026 budget, with analysts predicting a focus on public-private partnerships to fund major capital projects.
As Otti continues to steer Abia toward economic recovery, all eyes will be on how his administration balances development goals with fiscal prudence.
By Chukwuma Eze, Umuahia
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