James Uche
Abia State has emerged as Nigeria’s leading state in domestic debt reduction, thanks to bold fiscal reforms under the leadership of Governor Alex Chioma Otti. According to the latest data released by the Debt Management Office (DMO), Abia achieved a historic 57.20% reduction in its domestic debt portfolio between March 31, 2024, and March 31, 2025 — the highest percentage drop recorded by any state within the period under review.
This performance positions Abia as a model of fiscal prudence in a landscape where many sub-national governments continue to grapple with rising debt burdens. Following Abia on the list of top-performing states are Jigawa (-48.82%), Kogi (-47.12%), Katsina (-38.89%), and Delta (-38.87%), respectively.
In stark contrast, Taraba State topped the chart of states with the highest rise in domestic debt, recording a dramatic increase of 154.08%. Enugu State followed closely with a 128.46% surge, while Niger, Rivers, and Bauchi also made the top five with increases of 67.02%, 56.68%, and 31.38%, respectively.
Other states that recorded significant reductions include the Federal Capital Territory (-34.99%), Borno (-31.98%), and Bayelsa (-28.77%). Meanwhile, states such as Gombe (+18.15%), Edo (+13.84%), and Benue (+11.21%) posted notable increases in their debt profiles.
Governor Otti’s financial stewardship has drawn commendation from economists and policy analysts who cite Abia’s trajectory as an encouraging sign of fiscal responsibility. They note that the administration’s aggressive debt repayment strategy has not only improved the state’s creditworthiness but has also positioned Abia for increased investment, infrastructure development, and enhanced delivery of social services.
Conversely, the ballooning debt levels in Taraba and other states have raised red flags among financial experts. There are growing concerns that unchecked borrowing could compromise the ability of these states to finance capital projects and meet recurrent expenditure without falling into a cycle of unsustainable debt.
As preparations for the 2026 budget season gather momentum, analysts suggest that Abia’s example provides a compelling case study for prudent economic governance, while Taraba’s sharp debt escalation stands as a warning of the dangers of fiscal mismanagement.
