Mid-term assessment: A critical review of Cross River state’s socio-economic struggles under Bassey Otu

As Cross River state marks Governor Bassey Otu’s second year in office on May 29, 2025, the occasion demands a critical evaluation of his administration’s performance under the All Progressives Congress (APC).

After two years in office, economic indicators in Cross River State shows 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 resource mismanagement and 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 troubling 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, prioritizing 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, 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. 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 prioritizing 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 widespread poverty. Otu’s focus on office renovations and the commissioning of a constitutionally unrecognized 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 capitalize 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 underutilization 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 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 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 revitalization. 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 underutilized due to mismanagement and lack of investment. Cross River can draw inspiration from states like Lagos State, where Governor Babajide Sanwo-Olu has prioritized 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 incentivize businesses, boost IGR, and improve VAT remittances to reverse the state’s economic decline.

Two years into Governor Bassey Otu’s tenure, Cross River State languishes under the APC’s poor leadership, epitomized by socio-economic incompetence and resource mismanagement. The administration’s 34th ranking in VAT remittances for Q1 2025, coupled with its focus on non-essential projects like the governor’s office renovation and the commissioning of the constitutionally unrecognized office for the Governor’s wife, has left citizens grappling with poverty and unemployment.

The APC, through Otu’s leadership, has failed to deliver the dividends of democracy, prioritizing elite interests over the welfare of the masses. The people of Cross River deserve better leadership that halts fiscal recklessness, invests in economic growth, and addresses 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.

Okoronkwo, a leadership and good governance advocate writes from Lagos and can be reached via [email protected]