Anambra: We’re Still Repaying Loans Borrowed Under Obi, Others

The Anambra State Government says it is still repaying loans obtained by previous administrations, including those of former governors Peter Obi and Willie Obiano.

The state Commissioner for Finance, Izuchukwu Okafor, disclosed this while speaking on the Ndi Anambra podcast, saying deductions were still being made from the state’s monthly Federation Account Allocation Committee allocation to service the inherited obligations.

Okafor said the deductions were reflected in the state’s monthly FAAC statements and continued to affect the amount available to the government for other expenditures.

He said some of the loans were contracted during the administrations of Obi, Obiano and other former governors, with repayment arrangements extending beyond their respective tenures.

The commissioner, however, said the administration of Governor Chukwuma Soludo had not obtained any commercial bank loan since assuming office.

According to him, the government had instead concentrated on servicing inherited debts and reducing the state’s overall financial obligations.

Okafor claimed that Anambra’s debt burden had declined by more than 83 per cent under Soludo, while the administration had also cleared several inherited domestic liabilities.

He listed unpaid contracts, gratuity arrears and pension arrears among the obligations addressed by the government.

The commissioner said some external debts remained outstanding, including facilities obtained from development institutions such as the World Bank. He explained that repayments for some of the facilities were deducted directly from the state’s federal allocation.

Okafor also disclosed that the government had recently repaid a facility obtained under the Central Bank of Nigeria’s Commercial Agriculture Credit Scheme.

He said clearing inherited liabilities had created additional fiscal space for the state and enabled the government to direct more resources towards development projects.

The latest disclosure has revived the long-running debate over Anambra’s financial position at the end of Obi’s tenure.

Obi governed Anambra from 2006 to 2014 before handing over to Obiano, who remained in office until 2022. Soludo succeeded Obiano in March 2022.

Obi has previously maintained that he left Anambra with substantial savings and investments and did not leave the state heavily indebted.

The state government’s latest position, however, is that some loan obligations inherited from earlier administrations remain active and are still being serviced through deductions from federal allocations.

Okafor said the Soludo administration would continue prioritising debt repayment and fiscal discipline while working to create more resources for the state’s development.