SIR: Cross River State marks Governor Bassey Otu’s second year in office on May 29, 2025. After two years in office, economic indicators in Cross River State show a discontent as Otu’s optimism and the public’s pessimism grows starker.
Rather than celebrating transformative projects that uplift the state’s 3.7 million residents, Otu’s tenure has been overshadowed by allegations of socio-economic incompetence.
Perhaps the most telling verdict on Otu’s’ two years in office, were the commissioning of an office for the governor’s wife, alongside the commissioning of the governor’s new office.
This exemplifies a focus on non-essential projects. Compounded by Cross River’s dismal 34th ranking out of 36 states in VAT remittances for Q1 2025 as these actions highlight a leadership, disconnected from the people’s needs, prioritising elite interests in a state grappling with poverty, unemployment, and economic stagnation.
Otu’s administration has faced intense scrutiny for its emphasis on monument projects that offer little benefit to the masses. The renovation of the governor’s office has been touted as a major accomplishment.
More alarmingly, the commissioning of an office for the governor’s wife, Bishop Mrs. Eyoanwan Otu, represents a significant liability, given that the office of the First Lady has no constitutional basis in Nigeria.
This expenditure, justified under the guise of public service, diverts scarce resources from critical sectors like healthcare, education, and infrastructure. Such projects reflect a leadership more concerned with elite comfort than public welfare.
This pattern of prioritising personal interests over public good echoes historical examples of Nigerian governors who pursued self-serving agendas. Otu’s focus on office renovations and the commissioning of a constitutionally unrecognised office risks mirroring this legacy, raising questions about his administration’s commitment to the people.
According to the National Bureau of Statistics, Cross River generated a paltry N2.86 billion in VAT, compared to much smaller states like Ekiti, Ondo and 20 others.
This poor performance reflects a failure to stimulate economic activity, attract investments, or create a conducive environment for businesses. The state’s low VAT remittances stem from inadequate incentives for small and medium enterprises (SMEs) and a lack of policies to boost economic vibrancy.
Cross River has failed to capitalise on its tourism and agricultural potential. The neglect of assets like the Obudu Cattle Ranch exacerbated by the recent termination of its 25-year concession deal and the underutilisation of the Calabar Carnival highlight a lack of strategic vision.
While the administration has paid N55 billion toward inherited debts and contractual obligations, its continued expensive borrowing for risky investments such as the acquisition of two new airplanes without clear repayment plans raises concerns.
Nigeria’s historical debt crisis, with external debt reaching $32 billion by 1995, serves as a warning of the dangers of fiscal indiscretion. Cross River’s growing debt, coupled with low internally generated revenue (IGR) and VAT contributions, risk plunging the state into a financial crisis.
States like Lagos have successfully utilised public-private partnerships (PPPs) to fund infrastructure and boost revenue, a model Cross River has yet to emulate.
Otu must urgently redirect his administration’s priorities to address Cross River’s socio-economic challenges. The administration should invest in sectors with high economic potential, such as tourism, infrastructure, health, agriculture, and education.
Otu’s administration must implement policies that incentivise businesses, boost IGR, and improve VAT remittances to reverse the state’s economic decline.
The people of Cross River deserve better leadership that addresses their pressing needs.
Kalu Okoronkwo, a leadership and good governance advocate, wrote from Lagos.
