Abia State Governor, Dr Alex Otti, has reduced the state’s inherited debt from N191 billion to about N48 billion in less than three years in office, according to the state’s Debt Management Office.

The disclosure was made by Dr Benson Nwaigburu, General Manager of the Abia State Debt Management Office, who described the achievement as a major milestone in fiscal discipline and economic management.

When Otti assumed office on May 29, 2023, the state faced a heavy debt burden accumulated over several years, which had constrained development, limited investments in infrastructure, and affected the delivery of essential services.

Nwaigburu said the administration responded by introducing reforms focused on transparency, accountability, and prudent financial management. Rather than taking on new loans, the government prioritised boosting internally generated revenue, reducing waste, blocking financial leakages, and directing resources to key sectors.

He noted that these measures have yielded significant results, with over N142 billion of the inherited debt already repaid, bringing the outstanding balance to approximately N48.4 billion. This represents a reduction of more than 70 per cent of the original debt.

According to him, the progress places Abia among states making notable strides in debt reduction, especially at a time when many others continue to face rising debt profiles.

Nwaigburu explained that lowering the debt burden creates room for increased investment in critical areas such as roads, healthcare, education, pensions, salaries, security, and youth empowerment.

He added that the improved financial position is also expected to boost investor confidence, as businesses are more likely to invest in states with stable finances and predictable policies.

“The people of Abia are beginning to see governance driven by results,” he said, noting that the state is gradually transitioning from financial strain to a path of sustainable growth.

The Debt Management Office has also undergone internal reforms, with improved monitoring systems and stronger reporting standards introduced to align with the government’s broader fiscal agenda.

Observers say the development reflects a shift toward more disciplined governance, with the administration taking deliberate steps to address long-standing financial challenges.

As the government approaches its third year in office, the sharp reduction in debt is being viewed as one of its key achievements, with supporters expressing optimism about the state’s economic direction.