Abia State Governor, Alex Otti, has disclosed that the state's debt stock declined from N147.2bn in the second quarter of 2023 to N48.6bn in the corresponding period of 2026, representing a reduction of N98.6bn.

Otti made the disclosure during the October edition of his monthly media chat with journalists, where he provided updates on the state's debt profile, foreign loan obligations and his administration's borrowing policy.

The governor also expressed satisfaction with Abia's emergence as the second-best-performing state in the 2025/2026 climate governance ranking.

According to him, the debt inherited by his administration was substantially higher than the figure officially recorded by the Debt Management Office (DMO), as outstanding pension obligations and salary arrears were not included in the reported amount.

“As at Quarter 2, 2023, we were at N147.2bn, and that did not include debts that were not reported to the DMO, like pensions and salary arrears. But as at Quarter 2, 2026, that number has declined to N48.6bn. That means more than N90bn has been paid off,” Otti stated.

Addressing reports suggesting an increase in the state's foreign debt obligations, the governor explained that the development was largely associated with the disbursement of funds under existing multilateral loan arrangements.

He identified the Abia State Integrated Infrastructure Development Project and the Rural Access and Agricultural Marketing Project (RAAMP) as some of the financing arrangements involved.

Otti maintained that his administration had not undertaken any direct borrowing, explaining that the reported increase in foreign loan figures was linked to funds being drawn from previously established development financing agreements.

“I am sure you have seen a report that said we have increased our loan book in terms of foreign borrowing,” he explained. “I believe it is the ABSID that we have drawn down, and then some other multilateral loans, including the RAAMP, that are being drawn down.”

The governor, however, clarified that his administration was not opposed to borrowing when necessary, provided the funds would be invested in projects capable of generating long-term economic benefits for the state.

“So far, there is no direct borrowing by the government,” he said. “But that doesn’t mean we won’t borrow if it becomes absolutely necessary. We will borrow for regenerative projects, at the right time.”

On environmental governance, Otti announced that Abia State had emerged second in the 2025/2026 climate governance ranking, describing the recognition as an indication of the impact of the administration's environmental and climate-related initiatives.

He attributed the state's performance partly to interventions such as the introduction of green shuttle buses and said his government would continue to pursue policies and programmes that promote environmentally responsible development.