Why I support Tinubu’s subsidy removal, floating of naira – Gov Alex Otti
By Tunde Opalana
Abia State governor, Dr. Alex Otti has commended the political will of President Bola Tinubu to terminate payment of subsidy on petroleum resources.
Removal of subsidy by the President at the inception of his administration was widely condemned over attendant challenges on the economy.
However, Gov. Otti said taken such decision was somehow harsh, the economy is paying off well afterwards.
The Abia State governor spoke during an interview on Arise TV anchored by Rufai Oseni.
In the clip of the interview was posted on X, Dr. Otti who said it is too early to assess the Tinubu administration insisted that it will be premature to judge Tinubu’s performance in just 23 months into the APC – led government.
He, however, commended the timing of subsidy removal by the president.
He said “subsidy removal was long overdue. What was happening was that big men like you and I were the ones enjoying fuel subsidies. Even the Naira floating, I have spoken about it. It is just that the two policies happened at the same time.”
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Expressing optimism in the long term positive effects of the twin reforms, he said “over time, I believe that this economy will rebound if the current economic reforms are kept.
“Are you surprised that inflation is 24 percent? What is an interest rate? Inflation goes with interest rates. They will keep chasing themselves no matter how much you rebase.
“It is very unfortunate, but some of the sacrifices must be made. If you don’t today, you will tomorrow, or the economy will go up in flames. One of the problems with FX is because we are not producing and exporting much other than crude oil.
“What we are doing is creating an environment where productivity will happen.”
During the interview, Dr. Otti took time to talk about how he has been able to manage the affairs of Abia State despite challenges he allegedly created by his predecessor, Dr. Okezie Ikpeazu.
Though difficult, he said he has gradually been able to correct several deceptive legacies left behind by the immediate past government including an uncompleted Government House which was commissioned by the Ikpeazu administration before leaving office
He said he inherited a debt profile of ₦192 billion, including outstanding salaries, pensions, and debts owed to government parastatals.
Speaking on the uncompleted Government House he inherited, he said
“what happened was that my predecessor commissioned an uncompleted building on the 28th of May. And it is supposed to be new Government House. So what did he do? He completed the ground floor, finished it very well, put Italian furniture in the place, painted it, and commissioned it.
“So after the inauguration, I went there. When I looked at the ground floor, I was very happy. But as I went to the first and second floor, they were not even plastered. No sanitary fittings, nothing. So that’s fraud.”
Vowing not to probe Ikpeazu, because probing is a waste of my time,” the governor said, “you have only four years. And when you get into some of these distractive things, you lose focus. I have too much work to do. Of course, we tried to, we called in KPMG at some point. And I’m sure you must have seen that, where they looked at one of the accounts.
“And they found that some 10 billion Naira was drawn for a non-existent airport. So that’s the only one that we are saying, bring back our money or give us the airport.”
Otti disclosed that his government had not borrowed a single kobo since assuming office, despite inheriting a debt profile of ₦192 billion, including outstanding salaries, pensions, and debts owed to government parastatals.
He said, “Let me tell you something. I just saw the numbers from DMO, that in 2023, they said we inherited a debt profile of $138 billion. But as at the end of last year, we reduced it to $66 billion. We have not borrowed one dime.”
“Let me also go back and let you know that by the time we looked at the books and the numbers, we found that it was actually N192 billion that my predecessor handed over to me as debt.”
“DMO didn’t include pension areas, which we cleared off. They didn’t include salary areas, which we also paid. They didn’t include all the parastatals that were being owed, including Ogbonnaya Onu Polytechnic and then the medical personnel.
“So those we have taken care of. And today I can tell you the state is running very, very well. Don’t bother yourself about where I’m going to find the money because that’s my own area,”
