Otti: Windfall from Increased Oil Prices Boosts Nigeria’s Fiscal Space, Offers Relief,  Opportunity

Ndubuisi Francis in Abuja 

Abia State Governor, Dr. Alex Otti, has noted that the current windfall from increased oil prices, partly triggered by the geopolitical tensions in the Middle East has boosted Nigeria’s fiscal space, adding that for a resource-dependent economy like Nigeria, this moment offers both relief and opportunity. 

Otti spoke weekend at the 2026 symposium of the Abia Think Tank Association (ATTA), a think tank of leading technocrats and industrialists, who appraised the development strides of his administration, urging investors to take advantage of the enormous business-friendly potential inherent in the state, to invest for optimum returns.

The event was themed, ‘Renewed Nigeria’s Economic Resurgence: Is Abia Prepared?’

In his remarks, Otti, who was represented by his Chief of Staff, Dr. Caleb Ajagba, cited  some key national indicators that seem to paint a picture of optimism from the fourth quarter (Q4) of 2025.

He said: “As we inch closer to the end of first quarter of 2026, we are beginning to see a gradual stabilisation of the naira, which is restoring confidence in our financial system and providing a more predictable environment for planning and investment.

“We are equally witnessing a historic shift towards local production especially in agriculture and petroleum products, thereby breaking a long-standing paradox in which Nigeria exports raw materials including crude oil while importing manufactured products and refined fuel at cut-throat prices. 

“This transition mentioned earlier is not just economic; it is strategic. It signifies a move towards self-reliance, industrialisation and the retention of value within our borders.

“The current windfall from increased oil prices, partly caused by the geopolitical tensions in the Middle East, has boosted our fiscal space. For a resource-dependent economy like Nigeria, this moment offers both relief and opportunity. 

“Oil production has been on the increase and with the current price mark per barrel hovering around $100 from its previous range of between $63-$66 in Q4 2025 and an increase in our production quota of 1.7 million barrels per day from 1.58 million barrels per day in previous months, the revenues accruing to the nation are being strengthened thereby making more money available for the federation.”

The governor alluded to the World Bank’s projection that Nigeria’s GDP is expected to grow by between 4–4.5 per cent in 2025-2026, adding that while inflation decelerated from 34.80 per cent in December 2024 to about 15.15 per cent by Q4 2025, the extra earnings have however not necessarily translated to improved standard of living of Nigerians as many structural issues remain.

These are high poverty levels, infrastructure deficits, energy and logistics challenges, he added.

“The war in Iran and other parts of Middle East, with its attendant inflation is leading to higher cost of living and lowered standard of living. This is not hard to decipher because Nigeria is an import-dependent economy and whatever happens in the international market has direct effect on Nigeria and Nigerians. 

“So, the national economy can be said to be entering a recovery window that states with visionary leaders can leverage on,” he observed.

On the state’s trajectory since he assumed office as governor, Otti disclosed that a whole lot of policy reforms, infrastructure improvements, institutional mechanisms, and investor commitments had been made which are visible signs of investor confidence in the state’s economy.

On ease of doing business, Otti said Abia State had made significant progress in improving its business environment through institutional and regulatory reforms, pointing out that it ranked 10th in 2025 from 18th in 2024 and 32nd in 2022. 

In his remarks, a former Director-General General of the National Directorate of Employment (NDE), Chief Chuku Wachuku, a prominent member of the ATTA

stated that under the Otti administration, “there is a deliberate attempt to solve problems—not manage them, not explain them, but solve them”.

He acknowledged that despite the strides of the Otti administration, Abia is not where it should be yet, but is no longer standing still.

Wachuku, who is the President, Agricultural and Industrial Entrepreneurs of Nigeria (AIEN) noted: “Nigeria runs on small businesses—not oil, not theory, but millions of everyday entrepreneurs.And if that is true, then Abia should not be catching up.

“Abia should be leading because what the rest of the country is trying to build, Abia already has—naturally.”

The pioneer Managing Director of the Nigerian Sovereign Investment Authority (NSIA), Mazi Uche Orji, who delivered the keynote address at the symposium, disclosed that Abia is ranked the fifth most industrialised state in Nigeria and holds the fourth highest index of human development in the country. 

The state, he further explained, is strategically positioned in the South-East, connecting eleven states of the South-south and South-east within a 150-kilometre radius — a market catchment of close to 60 million people. 

“As African supply chains deepen under the AfCFTA, and as global manufacturers seek production bases with access to large regional markets, Abia’s position — combined with the proposed Enyimba Economic City and improving airport infrastructure — makes it one of Nigeria’s most logistically compelling investment destinations,” Orji added in his keynote address titled, “The Place of Abia State in Nigeria’s Economic Resurgence.”