The Anambra State Government has disclosed that Governor Chukwuma Soludo’s administration is still servicing loans and debts inherited from previous governments, including those of former governors Peter Obi and Willie Obiano.
Commissioner for Finance, Izuchukwu Okafor, made the revelation during a Ndi Anambra podcast uploaded by the state’s New Media team on Monday. He explained that while Soludo has not borrowed from any commercial bank since assuming office, deductions are made monthly from the state’s Federation Account Allocation Committee (FAAC) funds to repay loans obtained by past administrations.
“It’s on record that this administration has not borrowed a kobo from any commercial bank since inception. But every month, significant deductions are made from our FAAC allocation because of loans borrowed by previous administrations,” Okafor said.
He noted that some of the loans date back to the tenures of Obi and Obiano, but stressed that Soludo’s government has reduced the state’s debt burden by over 83 per cent, clearing several domestic obligations such as unpaid contracts, gratuity arrears, and pension arrears.
“In terms of our domestic debt, we’ve been able to clear legacy debts—contracts not paid, gratuity arrears, pension arrears. Today, our domestic debt is near-zero balance,” he added.
On external debts, Okafor explained that repayments are automatically deducted from federal allocations due to covenants attached to loans, including those from the World Bank. He revealed that the state recently paid off one of its debts, known as CAGS, creating more fiscal space for development.
The commissioner emphasized that Soludo’s debt-management strategy has strengthened Anambra’s finances, enabling the government to meet obligations without new borrowing.
This disclosure comes amid past claims by Peter Obi, who during his 2022 presidential campaign insisted he never borrowed from any financial institution while serving as governor.
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