The Anambra State Government has said it is still servicing loans and other financial obligations inherited from previous administrations, including those of former governors Peter Obi and Willie Obiano.
The disclosure was made by the state’s Commissioner for Finance, Izuchukwu Okafor, during an Ndi Anambra podcast published by the state government’s New Media team.
Okafor said the Chukwuma Soludo administration had not borrowed from commercial banks since taking office but continued to make repayments on facilities obtained before 2022.
FAAC deductions
According to the commissioner, deductions are made from Anambra’s allocations from the Federation Account to service some inherited obligations.
He specifically linked some of the outstanding loans to the administrations of Obi and Obiano.
The disclosure is significant because Obi has long been associated with a reputation for fiscal prudence during his time as governor of Anambra between 2006 and 2013.
Okafor, however, distinguished between taking new commercial loans and servicing existing obligations.
He said the Soludo administration’s position was that it had avoided new commercial borrowing while concentrating on reducing liabilities inherited from previous governments.
Government claims substantial debt reduction
The commissioner also said the state had reduced its overall debt burden by more than 83 per cent under Soludo.
He said the administration had cleared a number of domestic liabilities, including unpaid contracts, gratuity obligations and pension arrears, bringing the state’s domestic debt close to zero.
Some external facilities, including development-related loans, remain subject to repayment arrangements that can result in deductions from federal allocations.
Okafor said the state had also recently cleared an obligation described as CAGS, creating additional fiscal room for government programmes.
Political implications
The disclosure is likely to feed into the broader political debate over the financial records of successive Anambra administrations, particularly as Peter Obi remains a major opposition figure ahead of the 2027 presidential election.
It also highlights an important distinction in public discussions about state borrowing: an administration can avoid taking new loans while still carrying significant inherited debt obligations.
The Soludo administration has increasingly presented debt reduction and fiscal management as important elements of its governance record.
Whether the government’s claims will satisfy critics is likely to depend on the detailed financial records and independent assessments of the state’s debt position.