The Anambra State Government has said 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.
The state 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 under the Soludo administration.
Okafor said the current administration had not borrowed from any commercial bank since taking office but had continued to service loans obtained by previous 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,” he said.
According to the commissioner, deductions were made monthly from the state’s Federation Account Allocation Committee funds to service loans inherited from previous administrations.
READ ALSO:
- I Rejected Inflated Budgets As Anambra Governor – Obi
- 2027: LP Chieftain Sues WAEC, UNN, NYSC Over Obi’s Credentials
- 2027: LP Chieftain Sues WAEC, UNN, NYSC Over Obi’s Credentials
“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,” Okafor said.
He specifically identified the administrations of Obi and Obiano among those that obtained some of the loans currently being serviced by the state.
“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.
However, Okafor said the Soludo administration had significantly reduced Anambra’s overall debt burden while clearing several inherited domestic obligations.
He claimed that the state’s debt had been reduced by more than 83 per cent under the current administration.
“But I will also say that 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,” the commissioner said.
Okafor said the government had also cleared several legacy debts, including unpaid contracts, gratuity arrears and pension arrears.
“In terms of, so, our domestic debt as of today is near-zero balance,” he added.
On external debts, the commissioner explained that repayments were automatically deducted from federal allocations because of the terms attached to the loans.
He said some of the loans were obtained from institutions such as the World Bank and were subject to repayment arrangements that affected the state’s monthly allocations.
“There is one debt that we recently paid off, CAGS,” Okafor disclosed.
According to him, the government’s debt-management strategy had created more fiscal space for Anambra State by paying off 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,” he said.
It will be recalled that in 2022, Obi, who was then the presidential candidate of the Labour Party, had said he did not borrow from any financial institution during his tenure as Anambra governor.
Speaking at an Arise TV Town Hall meeting in Abuja, Obi said he served as governor for eight years without borrowing.
“During my time as a former governor, I served for eight eights. You can go to that state you will find that I never borrowed from any financial institution in Nigeria,” Obi said.
He also said, “I have never borrowed, I served faithfully and I left their money.”
Source: Politics Archives – New Telegraph
