KELECHI AMADI OBI & KELECHI OFOEDU
Before entering politics, Alex Otti spent more than two decades in the banking industry, rising through the ranks of several leading financial institutions before becoming Group Managing Director and Chief Executive Officer of Diamond Bank. His years in the corporate world gave him experience in financial management, business development and leadership, but in 2014, he chose to leave banking and pursue a different ambition: becoming governor of Abia State.
The move from boardroom to politics came with its share of challenges. Otti contested under the All Progressives Grand Alliance in 2015, when the Court of Appeal declared him the winner of the governorship election, only for the Supreme Court to reverse the decision. He returned to the race in 2019 and made a third attempt in 2023 under the Labour Party, eventually securing victory and taking office as governor.
Since then, his administration has focused on road construction, public transportation, electricity supply and improving the operating environment for local manufacturers, particularly in Aba. Otti says his government has also reduced the state’s inherited debt by about 75 per cent while maintaining significant capital expenditure without borrowing for the road projects he highlights. These claims form part of his account of the administration’s priorities, alongside efforts to strengthen public services and support business activity.
With another governorship election approaching in 2027, questions remain about his political future and his place in the Labour Party. In this interview with Funke Babs-Kufeji, Otti discusses his administration’s record, the thinking behind its policies, the challenges of governance and the kind of legacy he hopes to leave behind.
When you became governor in 2023, what did you find when you looked closely at the state’s infrastructure and finances? What immediately told you there was a lot of work to do?
Whatever I saw, I told myself I would roll up my sleeves and deal with it. I saw a great deal, but you do not solve a problem by bemoaning your fate or looking backwards. As MKO Abiola reportedly said, you cannot move forward while looking backwards. I inherited debt of about ₦191.22 billion, including contractor debts, pension arrears and obligations to multilateral organisations. The debt to multilateral organisations was reported by the Debt Management Office at about ₦148 billion. We have since reduced the debt to about ₦48.4 billion, paying roughly 75 per cent of the debt we inherited.
You made infrastructure an early priority. You have said that your administration built about 450 roads without borrowing while reducing inherited debt by 75 per cent within 36 months. How did you manage that, and where did you decide to start?
It comes down to planning. We decided that no less than 80 per cent of our budget would go into capital expenditure. Over the last three years, that figure has been between 80 and 82 per cent. In 2024, for instance, it was about 82 per cent, leaving roughly 18 per cent for recurrent spending. If the budget is ₦1 trillion, that means about ₦800 billion goes into capital expenditure, with the balance covering operating costs and other recurrent needs. That discipline leaves more money for roads, environmental work, hospitals, schools and other infrastructure. The other issue is the cost of governance. If you do not manage it carefully, you can work hard year after year without seeing the results.
You have always emphasized about the importance of reducing the cost of governance, What have you done to reduce the cost of governance?
We have tried to keep the cost of governance within 20 per cent. Salaries account for about 11.9 per cent of our costs, and we intend to keep that figure under control even after implementing the new minimum wage. We have had to reduce other areas of expenditure. That is part of the discipline behind our approach.
Did your experience as a bank chief executive help you manage the state’s finances?
Experience matters alot. I worked in banking and have always been comfortable working with numbers, so that background has been very useful to me. You cannot give what you do not have, and that experience has helped.
The opposition has criticised the pace of your projects and accused you of failing to give the Federal Government adequate credit for some of the roads you have constructed. There have also been reports about the technical and administrative support behind federal road projects in Abia. Tell us about this support.
The question to ask is what exactly is meant by technical and administrative support, and how much money is involved. There is a procedure for these things, and everything works according to that procedure. When the opposition runs out of things to criticise, it sometimes resorts to propaganda. These are federal roads that had not been attended to, so I approached the President and said I wanted to rehabilitate them and sought reimbursement from the Federal Government. The President told me that he had instructed the Minister of Works to approve requests from any state governor who wanted to construct federal roads within their state. He asked me to approach the Minister and follow the established procedure. However, the Federal Government would not commit to reimbursing the state. The President’s position was that the roads were being used by our people, so the state could choose to undertake the work if it wanted to. I subsequently approached the Minister, obtained the necessary approvals and awarded the contracts. The roads were completed. Then people began asking why I was not giving the Federal Government credit. We have always acknowledged that these are federal roads. What more credit is expected? The approval process is not an arrangement, it is available to every state that wants to undertake such projects.
Of the approximately 450 roads you have constructed, how many are federal roads?
Not many. There are about six federal road projects altogether, including Port Harcourt Road in Aba.
We had the chance to visit the newly constructed central bus terminal named after Professor Oti. It has been described as something of a mini airport, with a health centre, a control centre and other facilities. What is its capacity, and what are your plans for it?
The terminal has a capacity for 340 buses. It is not exclusively for our green shuttle buses; it will accommodate other operators as well, bringing public and private transport services together in one location. We do not want bus parks scattered all over the place. The idea is to centralise transport operations so buses can depart from and return to an organised terminal. Our broader objective is to make essential services, including transportation, education and healthcare, more accessible to everyone in Abia state.
Why did your administration choose electric buses, particularly after the removal of the fuel subsidy and the resulting increase in transportation costs?
When the petroleum subsidy was removed, transportation costs rose, along with the prices of other goods and services. The subsequent floating of the naira also contributed to inflation and a higher cost of living. At the National Economic Council, we discussed the impact of these developments, and the Federal Government provided support to states, including funding for compressed natural gas buses. When we assessed our circumstances in Abia, we felt there was an opportunity to go further. We had already made progress on electricity supply through Geometric Power, which serves Aba and several surrounding local government areas. We are interested in the green economy and the transition towards net-zero emissions. Electric vehicles have considerably fewer moving parts than conventional internal-combustion engines, which can reduce maintenance costs. We therefore decided to invest in electric buses, and we are pleased with that decision. We started with 20 buses, brought in another 20, and the next 30 were almost ready at the time of this interview, with delivery expected in November. Another 30 are planned after that. Our target is 100 electric buses.
You mentioned that the charging points at the terminal are powered by solar energy. How will the charging infrastructure be expanded across the state?
We have two facilities in Umuahia: one at the International Conference Centre and another at the bus terminal. The solar installation is an alternative power source. We do not want a situation where the public electricity supply fails and the buses cannot operate. We also have a charging facility in Aba, where we are building a larger bus terminal. The project has progressed considerably, and we expected to commission it before the end of the year or very early in the new year. The Aba terminal will be larger than the one named after Professor Oti. We plan to establish terminals across the three zones to connect major towns and communities more efficiently. Eventually, services could extend to cities such as Enugu, Port Harcourt and Lagos, depending on demand. There is no point running empty buses to Lagos; everything has to fit into the transport master plan.
There is a bigger question around Aba’s future as an industrial and manufacturing centre. It has often been described as the “Japan of Africa”, is it something you are promising it will be , and what specifically have you done in Aba since assuming office?
I often disagree with the phrase “Japan of Africa” We are not trying to copy Japan, China or Dubai. We want to be ourselves. We started with power because studies showed that energy accounts for close to 60 per cent of manufacturing costs. Geometric Power had been in Aba for almost 20 years but it had struggled to get going. We worked with the company and the state’s power team to identify the problems and took a decision to address them and in about a year, Geometric was operating, which resolved many problems. There were still shutdowns related to gas supply, so we also worked on an alternative gas supply. After power, we focused on the condition of the roads. We also looked at the quality of products made in Aba and, in partnership with the United Nations Development Programme, established an Export Growth Lab. The first cohort included about 25 manufacturers, who have completed the programme. Aba has always had enterprise. What it needed was an environment in which businesses could operate and grow. And it has that now.
In your opinion, do you see Made-in-Aba products competing with products made in China and becoming an asset for Nigeria?
Absolutely. Aba has a large manufacturing base, including shoes, fabrics and clothing. Nigeria itself provides a substantial market, and improving the business environment can help manufacturers reach more customers. The work is about enabling local producers to make quality products and become more competitive.
You have described Abia’s electricity arrangements as a major change, with Geometric Power supplying Aba and surrounding areas. If the state relies on this system and something goes wrong at Geometric, what is the fallback?
It is a risk, and the alternatives could include renewable energy or another source of power. The generating machines are built to operate continuously, but we still have to factor in the risks. It is similar to asking what happens if the national grid collapses. You have to start somewhere while planning for contingencies.
You have also said you do not intend to subsidise electricity and want to provide reliable, round-the-clock power. Why do you believe consumers should pay for electricity rather than receive a subsidy? What about low-income earners?
It is not everything that should be subsidised. When you subsidise consumption rather than production, you can encourage inefficiency and create opportunities for abuse. When people have to pay, they tend to use electricity more efficiently. However you look at it, reliable public power can still be cheaper than darkness. If a business has to run a generator, buy diesel and pay for maintenance, it may spend much more than it would on public power. Manufacturers need a consistent supply of electricity, and if you can provide that, they are prepared to pay for it. Low-income earners will have to manage their consumption as people do in many parts of the world, where households sometimes switch off electricity to conserve power.
You have the Labour Party ticket for the February 2027 governorship election, while saying you do not oppose President Bola Ahmed Tinubu’s re-election. Some people see this as a comfortable arrangement between a Labour Party governor and the ruling party. How do you explain your position?
I have said that I am not in a position to oppose his candidacy. Sometimes people misunderstand opposition. If you are part of a government and oppose everything, you can create an implosion. If I have a problem with a policy, I can raise it at our meetings. There are things the President’s administration has implemented that resonate with my thinking, including the removal of the fuel subsidy. I have also said that the President has a right to run. That does not mean I have abandoned my own political position or my own presidential candidate.
With the next governorship election approaching, what do you want the people of Abia to take away from your 3year 3months in office? Do you see the opposition as a threat to your re-election?
We are on the way to delivering what we promised our people. We have the capacity, commitment and character to do what is right. Opposition is a natural part of democracy. We are mindful of its existence, but we are not trying to push it away, and we do not react to it unnecessarily.
If you are no longer governor, what would you want your legacy to be? What should the people of Abia remember you for?
A. I have not thought about it in detail, but I would want my legacy to be about leadership: genuine, sound and selfless leadership that puts the people first. Leadership is more important than roads, hospitals or any individual project because everything succeeds or fails on the strength of leadership. Geometric Power deserves credit for its work; our role was to provide support. Providing that support is also part of what leadership
