The Anambra State Government says the administration of Governor Chukwuma Soludo is still servicing loans and other debts inherited from previous administrations, including those of former governors Peter Obi and Willie Obiano.
Commissioner for Finance Izuchukwu Okafor disclosed this during a Ndi Anambra podcast uploaded by Anambra State New Media on Monday, while explaining the state’s debt position.
Okafor said the current administration has not borrowed from any commercial bank since taking office, but continues to service loans obtained by earlier governments.
“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.
How The Debt Repayments Work
Okafor explained that deductions are made monthly from Anambra’s share of the Federation Account Allocation Committee (FAAC) — the body that shares federal, state and local government revenue from the national purse — to service loans taken out by earlier administrations.
“Yes, every month during our FAC meetings, and when you see the schedule of FAC, you will notice there were substantial, significant deductions from our own FAC because of loans previously borrowed by previous administrations,” he said, adding that some loans 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,” Okafor said.
Obi, now the presidential candidate of the Nigeria Democratic Congress (NDC) for the 2027 election, governed Anambra State until 2014, while Obiano succeeded him and served until 2022.
He is running his campaign on his record of financial prudence during his tenure.
Okafor said the Soludo administration has reduced the state’s overall debt burden by more than 83% since taking office, while also clearing several inherited domestic obligations.
“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,” he said, adding that unpaid contracts, gratuity arrears and pension arrears had all been cleared, leaving domestic debt near zero.
External Loans Still Tied To Federal Deductions
On external debt, Okafor said repayment terms attached to some foreign loans — including from the World Bank — mean deductions are made automatically from Anambra’s federal allocation before funds reach the state.
He said the administration recently paid off one such facility, referred to as CAGS, and described the overall debt strategy as having freed up fiscal space for the state.
“This administration has been able to create more [fiscal space] by paying off, you know, backlog of numerous debts inherited from previous governments, starting from the time of Peter Obi,” Okafor said.
Obi has previously disputed characterisations of his tenure as leaving behind debt. Speaking at an Arise TV town hall in 2022, as reported by Punch, Obi said he never borrowed from any Nigerian financial institution during his eight years as governor. “I have never borrowed, I served faithfully and I left their money,” he said at the time.
JolibaLive could not immediately reach representatives of Obi or Obiano for comment on Okafor’s remarks regarding loans allegedly taken during their tenures.
