By Isaac Mission 

The Anambra State Government has disclosed that it continues to repay loans obtained by previous administrations, including those of former governors Peter Obi and Willie Obiano.

The state’s Commissioner for Finance, Izuchukwu Okafor, made this known during an appearance on the Ndi Anambra podcast, produced by the state government’s New Media team.

Okafor explained that while the administration of Governor Chukwuma Soludo has refrained from obtaining fresh commercial bank loans since assuming office, it remains responsible for financial obligations inherited from earlier governments.

Existing Loans Remain Under Repayment

According to the commissioner, Anambra’s decision not to secure new commercial loans does not mean the state has stopped servicing its existing debts.

He said deductions are still being made from the state’s Federation Account Allocation Committee (FAAC) funds to settle loans contracted by previous administrations.

“It’s on record that this administration has not borrowed a kobo from any commercial bank since the inception of this administration,” Okafor said.

He specifically linked some of the outstanding facilities to the periods when Peter Obi and Willie Obiano served as governors.

Obi governed Anambra from 2006 to 2013, while Obiano succeeded him and remained in office until 2022. Soludo became governor in March 2022.

Soludo Administration Reports 83% Debt Reduction

Speaking on the government’s efforts to improve the state’s financial position, Okafor claimed that Anambra’s overall debt profile had been reduced by more than 83 per cent under the present administration.

“We have been able to manage the state debt very well, that we have brought it down by more than 83 per cent as of today,” he stated.

The commissioner said the government’s debt-reduction efforts extended beyond conventional loans to other financial obligations inherited from previous administrations.

These, he explained, included unpaid contracts, gratuity arrears and pension liabilities.

He said the administration had been working to clear the obligations while ensuring that resources remained available for ongoing government programmes.

Okafor also disclosed that the state’s domestic debt had been brought close to zero following the settlement of several outstanding liabilities.

World Bank, Development Loans Still Affect Allocations

The finance commissioner further explained that Anambra still has repayment obligations tied to loans obtained from development institutions.

Some of these facilities, he said, are structured to allow deductions directly from the state’s federal allocations.

He noted that the deductions continue even though the current administration has not taken fresh commercial bank loans.

Okafor’s explanation suggests that the state’s financial position cannot be assessed solely by examining new commercial borrowing, as inherited development and other loan facilities remain active.

Government Highlights Fiscal Discipline

The Soludo administration has continued to emphasise debt reduction and fiscal discipline as key parts of its financial management strategy.

According to the commissioner, the government has focused on managing inherited liabilities while relying on internally generated revenue and available public funds to finance its programmes.

Okafor also disclosed that the state had recently cleared an obligation identified as CAGS.

He said settling the liability would create more financial space for the government and enable it to channel additional resources into development projects and other areas of public spending.

The latest disclosure comes amid ongoing public discussions about Anambra’s borrowing history and the financial records of successive administrations.

While supporters of Peter Obi have often highlighted his administration’s savings and conservative financial management, the Soludo government maintains that inherited financial commitments remain part of the state’s obligations.

The commissioner’s comments did not provide the specific amounts borrowed under each former governor or identify the individual banks involved in the facilities he referenced.