Anambra Still Repaying Obi, Obiano-Era Loans, Commissioner Says

The Anambra State Government says it is still servicing loans inherited from previous administrations, including those of former governors Peter Obi and Willie Obiano, while insisting that Governor Chukwuma Soludo’s administration has not borrowed from any commercial bank since taking office.

The Commissioner for Finance, Izuchukwu Okafor, disclosed this during a Ndi Anambra podcast published by Anambra State New Media on Monday while outlining the state’s current debt position.

Okafor said the Soludo administration had relied on internally generated resources and federal allocations rather than taking new commercial bank loans. He stressed that existing deductions from the state’s Federation Account Allocation Committee funds were largely tied to debts incurred by previous administrations.

“It’s on record, you know, that this administration has not borrowed a kobo from any commercial bank since the inception of this administration,” Okafor said.

He explained that significant portions of Anambra’s monthly FAAC allocation were being deducted to service inherited obligations. According to him, some of the loans being repaid dated back to the administrations of Obi and Obiano.

“These loans were borrowed, you know, during the time of, even, not the immediate predecessor, even during the time of Peter Obi and Willie Obiano, His Excellency, the past governors,” he said.

Okafor, however, said the state’s overall debt burden had fallen substantially under Soludo, claiming it had been reduced by more than 83 per cent. He added that the government had also cleared several inherited domestic obligations, including unpaid contracts, gratuity arrears and pension arrears.

“But I will also say that Mr Governor has not borrowed a penny. We have been able to manage the debt, the state debt, very well, that we have brought it down by more than 83 per cent as of today. I’ve been able to repay back most of these loans,” the commissioner said.

He said Anambra’s domestic legacy debt was now “near-zero balance”, while repayments on some foreign-denominated loans continued to be deducted from federal allocations in line with the terms attached to the facilities, including some World Bank-related loans.

The commissioner also disclosed that the state had recently paid off one of its debts identified as CAGS, saying the repayment strategy had created additional fiscal space for the government.

However, Obi had previously disputed claims that he borrowed money while serving as Anambra governor. In 2022, during an Arise TV Town Hall meeting, the former governor said he had not borrowed from any financial institution in Nigeria during his eight years in office and maintained that he left the state’s finances in good standing.