Anambra Still Servicing Debts From Obi, Obiano Administrations — Finance Commissioner

By Our Correspondent

AWKA — The Anambra State Government says it is still paying off loans and other financial obligations inherited from previous administrations, including those of former governors Peter Obi and Willie Obiano, even as it insists Governor Chukwuma Soludo has not taken any commercial bank loan since assuming office.

The disclosure was made by the state Commissioner for Finance, Izuchukwu Okafor, during a Ndi Anambra podcast published by Anambra State New Media on Monday.

Okafor said the Soludo administration had inherited a substantial debt burden but had significantly reduced the state’s liabilities while clearing several outstanding domestic obligations.

“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.

‘We Are Still Servicing Loans From Previous Administrations’

According to the commissioner, deductions are made from Anambra’s monthly Federation Account Allocation Committee funds to service loans contracted by previous 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.

Okafor specifically linked some of the inherited loans 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.

The claim is significant because Obi has previously publicly maintained that he did not borrow from financial institutions while serving as Anambra governor.

Obi Previously Said He Never Borrowed

In 2022, while campaigning as the Labour Party’s presidential candidate, Obi said he did not borrow from any financial institution in Nigeria during his eight-year tenure as Anambra governor.

Speaking during an Arise TV Town Hall meeting in Abuja, Obi said:

“During my time as a former governor, I served for eight years. You can go to that state; you will find that I never borrowed from any financial institution in Nigeria.”

He added:

“I have never borrowed. I served faithfully and I left their money.”

The contrasting claims raise questions about the precise nature, source and timing of the loans Okafor said Anambra is still servicing, including whether they were directly contracted by the administrations in question or arose from other financing arrangements.

Soludo Administration Says Debt Has Fallen by More Than 83%

Despite the inherited obligations, Okafor said the Soludo administration had substantially reduced Anambra’s overall debt burden.

He claimed the state’s debt had fallen by more than 83 per cent since the administration assumed office.

“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,” he said.

The commissioner also said the government had cleared several categories of inherited domestic liabilities, including unpaid contracts, gratuity arrears and pension arrears.

“But I will give you an example for our domestic debt, the control, the legacy, what we call legacy debts, you know, the contracts that were not paid, the gratuity arrears, pension arrears, we’ve been able to clear all that,” Okafor said.

He added:

“In terms of our domestic debt as of today is near-zero balance.”

External Loans Still Being Repaid

Okafor explained that Anambra’s external debt obligations were being serviced through deductions from federal allocations, in accordance with the terms attached to the loans.

He said some of the obligations involved World Bank and other foreign-denominated loans.

“But following as well, external debts, which is foreign loan-denominated debts, when you look at it, because there are some covenants around the period it will take to pay off these loans, particularly deducted as such when we are doing FAC,” he said.

“Before they limit Anambra’s own allocation, they will deduct it as such, because most of them, World Bank loans and other loans, they committed.”

The commissioner also disclosed that the state had recently fully repaid one of its outstanding debts, identified as CAGS.

“There is one debt that we recently paid off, CAGS,” he said.

‘We Have Created More Fiscal Space’

According to Okafor, the government’s debt-management strategy has freed up resources that can now be deployed to other areas of governance.

“So, in a nutshell, I’ve been able to, you know, create more fiscal space for Anambra State,” he said.

He attributed the improved fiscal position to the repayment of inherited obligations.

“This administration has been able to create more by paying off, you know, backlog of numerous debts inherited from previous governments, starting from the time of Peter Obi,” Okafor said.

The latest disclosure places Anambra’s debt management back in the spotlight, particularly the question of how much of the state’s current revenue remains committed to servicing obligations accumulated over successive administrations.

While the Soludo government maintains that it has substantially reduced the burden, Obi’s earlier claim that he did not borrow from financial institutions during his tenure presents a point that may require further clarification from both sides.

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