By KALU OKORONKWO

With Cross River State marking Governor Bassey Otu’s second year in office on May 29, 2025, there are compelling reasons to critically evaluate his administration’s performance under the All Progressives Congress, APC.

After two years in office, economic indicators in Cross River State show a discontent as Otu’s optimism and the public’s pessimism grow starker.

Rather than celebrating transformative projects that uplift the state’s 3.7 million residents, Otu’s tenure has been overshadowed by allegations of resource mismanagement and failure to rise to the socio-economic challenges confronting the state.

Perhaps the most telling verdict on his 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 troubling focus on non-essential projects. The situation is compounded by Cross River’s dismal 34th ranking out of 36 states in VAT remittances for Q1 2025. The actions that gave rise to this highlight a leadership disconnected from the people’s needs, prioritising elite interests in a state grappling with poverty, unemployment and economic stagnation.

Governor 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, reportedly costing several billions in state funds, has been touted as a major accomplishment. More alarmingly, the commissioning of an office for the Governor’s wife 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. In a state where citizens struggle to access basic amenities, 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. Diepreye Alamieyeseigha of Bayelsa State (1999–2005), for instance, focused on grandiose projects that enriched a select few, while neglecting to address widespread poverty. 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.

Cross River State’s abysmal 34th ranking out of 36 states in Value Added Tax, VAT, remittances for Q1 2025 underscores the administration’s economic shortcomings. 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 under-utilisation of the Calabar Carnival highlight a lack of strategic vision. These missed opportunities have stifled economic growth and left Cross River languishing in the national VAT rankings.

The Otu administration’s handling of state finances further aggravates its economic challenges. Upon assuming office, Otu claimed to have inherited an empty treasury and decayed infrastructure from his predecessor, Ben Ayade. While the administration has paid N55 billion for 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 recklessness. Cross River’s growing debt, coupled with low internally generated revenue, IGR, and VAT contributions, risks plunging the state into a financial crisis.

The administration’s focus on non-essential projects, such as the governor’s office renovation and a new office for the Governor’s wife, diverts funds from initiatives that could drive economic growth, such as agro-industrial development or tourism revitalisation. States like Lagos have successfully utilized public-private partnerships, PPPs, to fund infrastructure and boost revenue, a model Cross River has yet to emulate.

Governor Otu must urgently redirect his administration’s priorities to address Cross River’s socio-economic challenges. The commissioning of a new office for the Governor’s wife’s, lacking in constitutional authority, is a misstep that squanders resources and undermines public trust. Instead, the administration should invest in sectors with high economic potential, such as tourism, infrastructure, health, agriculture, and education.

The state’s tourism assets, including the Obudu Cattle Ranch and Calabar Carnival, remain under-utilised due to mismanagement and lack of investment. Cross River can draw inspiration from states like Lagos State, where Governor Babajide Sanwo-Olu has prioritised infrastructure and inclusive policies, which thrives through economic diversification and strategic partnerships.

This example demonstrates that visionary leadership can transform challenges into opportunities. Otu’s administration must implement policies that incentivise businesses, boost IGR, and improve VAT remittances to reverse the state’s economic decline.

It is sad that Cross River State is presently languishing under APC’s poor leadership. The APC, through Otu’s leadership, has failed to deliver the dividends of democracy, prioritising elite interests over the welfare of the masses. The people of Cross River deserve a leadership that will readily invest in economic growth, and in the process address their pressing needs.

Without a drastic shift, the APC’s legacy in Cross River, under Otu, will be one of unfulfilled promises and squandered potential.