BREAKING: Anambra Govt Defends Peter Obi Loans, Says Debts Funded Malaria, Erosion, Education, Healthcare

The Anambra State Government has said loans incurred by previous administrations, including that of former governor Peter Obi, were used to finance projects and programmes covering areas such as malaria control, erosion management, education and healthcare.

The government said the state continues to make monthly debt-service payments on some of the inherited obligations, arguing that borrowing itself should not be the focus when the funds were used for projects with lasting benefits to residents.

The latest position comes amid an ongoing dispute between the state government and Obi over the financial obligations inherited by successive administrations.

The Anambra State Commissioner for Finance, Izuchukwu Okafor, had earlier said the administration of Governor Chukwuma Soludo had not obtained any commercial bank loan since taking office but was still servicing loans inherited from previous governments.

According to Okafor, deductions are made from Anambra’s monthly Federation Account Allocation Committee, or FAAC, funds to service some of the inherited loans.

He said some of the loans dated back to the administrations of Obi and former governor Willie Obiano.

‘We are not complaining’

The state government, in its latest response, maintained that borrowing for development projects should be assessed alongside the impact of the projects for which the funds were obtained.

The government said loans associated with previous administrations supported interventions in areas including malaria control, erosion control, education and healthcare, among others.

It argued that the continued repayment of such obligations does not necessarily mean the borrowing was unjustified, particularly where the projects delivered tangible benefits to the people of Anambra.

The government said it was continuing to service the inherited obligations while also working to reduce the state’s overall debt burden.

Okafor previously claimed that the Soludo administration had reduced Anambra’s debt burden by more than 83 per cent and had cleared several inherited domestic liabilities, including unpaid contracts, gratuity and pension arrears.

He also said Anambra’s domestic debt was currently at a near-zero balance, while repayments on some external obligations were deducted from the state’s federal allocations in line with the terms attached to the loans.

Peter Obi disputes debt claims

The development has renewed the disagreement between the state government and Obi over Anambra’s financial position when he left office.

Obi, who governed Anambra from 2006 to 2014, has rejected claims that his administration left behind the outstanding liabilities being attributed to it.

In a recent response, he said his administration had cleared more than N35 billion in historical gratuities and arrears and left office without outstanding salaries, pensions or gratuities.

He also disputed claims concerning a N2 billion ecological fund, saying the money was released shortly before the end of his tenure specifically for an erosion project at Oko/Umuchiana.

Obi said the fund was kept in a dedicated account rather than spent before his departure because he wanted the incoming administration to continue with the project.

He has challenged anyone disputing his account to produce evidence.

Anambra debt dispute continues

The disagreement centres on the distinction between formal loans, other inherited financial obligations and funds or assets that Obi says were left for his successor.

The Anambra Government maintains that some loans contracted by previous administrations remain subject to repayment deductions from the state’s federal allocation.

Obi, however, maintains that he did not leave Anambra with the outstanding obligations being attributed to his administration.

The latest statement from the state government therefore adds another dimension to the continuing debate over how previous administrations financed development projects and the extent of liabilities inherited by subsequent governments.

The dispute remains a matter of competing claims, with the state government pointing to continuing debt-service deductions and Obi challenging the characterization of his administration’s financial record.