The Anambra State Government has disclosed that it is still servicing loans inherited from the administrations of former governors Peter Obi and Willie Obiano.
The state government, however, maintained that Governor Chukwuma Soludo has not obtained any commercial bank loan since assuming office.
The Commissioner for Finance, Izuchukwu Okafor, made this known while discussing the state’s financial position and debt profile on the Ndi Anambra podcast, uploaded by Anambra State New Media on Monday.
Okafor said Anambra’s debt burden had declined by more than 83 per cent under the Soludo administration, while the government had also settled several domestic obligations inherited from previous administrations.
According to the commissioner, deductions for loans secured by past administrations are still being made from the state’s allocation through the Federation Account Allocation Committee (FAAC).
“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 added that some of the outstanding obligations dated back to the administrations of Obi and Obiano.
“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.
Okafor explained that the Soludo administration had prioritised the management and repayment of inherited debts while refraining from taking on new commercial bank loans.
The disclosure comes amid discussions about Anambra State’s fiscal position and the administration’s approach to managing its inherited financial obligations.
