Mujeeb Akindoyin
The Anambra State Government says it is still servicing loans obtained by previous administrations, including those of former governors Peter Obi and Willie Obiano, with deductions continuing to be made from the state’s monthly allocation from the Federation Account.
The Commissioner for Finance, Izuchukwu Okafor, disclosed this while speaking on the Voice of Ndi Anambra Podcast, in a video clip shared by the Anambra State New Media on Monday.
Okafor said substantial deductions were made from Anambra’s Federation Account Allocation Committee revenue every month to service debts incurred by successive administrations.
He said, “Every month during our FAAC meetings, when you see the schedule of FAAC, you will notice there are substantial, significant deductions from our own FAAC because of loans previously borrowed by previous administrations.
“These loans were borrowed during the time of Peter Obi and Willie Obiano and other past governors.”
The commissioner, however, said the administration of Governor Chukwuma Soludo had not obtained any commercial bank loan since assuming office in 2022.
According to him, the Soludo administration has reduced the state’s debt by more than 83 per cent while also clearing most of its domestic liabilities.
He specifically listed unpaid contractual obligations, gratuities and pension liabilities among the debts being addressed by the administration.
“It is on record that this Soludo government has not borrowed a kobo from any commercial bank since the inception of this administration. Our domestic debt as of today is near zero balance,” Okafor stated.
The commissioner explained that despite the reduction in domestic liabilities, deductions from the state’s federal allocation persist because of external obligations owed to institutions such as the World Bank and other lenders.
He added that the state had also recently repaid a loan obtained from the Central Bank of Nigeria under the Commercial Agriculture Credit Scheme.
Okafor said the debt repayments had created additional fiscal space for the state government to finance development.
“In a nutshell, we have been able to create more fiscal space for Anambra State by paying off the backlog of numerous debts inherited from previous governments, starting from the time of Peter Obi,” he said.
The latest disclosure has renewed the long-running disagreement between Obi and Soludo over the financial position inherited by the latter’s administration.
Obi, who governed Anambra between 2006 and 2014, has repeatedly maintained that he did not leave the state indebted when he handed over power.
The former governor had also claimed that his administration left about $150m in the state’s coffers.
However, Soludo’s administration has on several occasions disputed aspects of Obi’s claims concerning the state’s finances, including the extent of liabilities inherited from previous administrations.
The debt controversy has assumed added political significance as Obi, now the presidential candidate of the Nigeria Democratic Congress, positions himself for the 2027 presidential election.
The two politicians have also disagreed publicly over Obi’s promise to serve only one term if elected President.
In August 2025, Soludo criticised politicians who promised to spend only one term in office, in what was widely viewed as a reference to Obi’s pledge.
“Anybody, any politician who said that must be sent to a psychiatric home,” Soludo had said at a political rally in Anambra.
Soludo argued that since the Constitution allows elected presidents and governors to serve two terms, politicians promising to serve only one term should not be taken seriously.
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