By Sandra Kenneth
The Anambra State Government has revealed that the administration of Governor Chukwuma Soludo is actively servicing debts and financial obligations inherited from past leadership, including the tenures of former governors Peter Obi and Willie Obiano.
Speaking on the Ndi Anambra podcast hosted by Anambra State New Media, the Commissioner for Finance, Izuchukwu Okafor, outlined the state’s current debt management strategy, noting that the administration has maintained strict fiscal discipline since taking office.
According to Okafor, the Soludo administration has not taken out any commercial bank loans. Instead, substantial automatic deductions are made monthly from the state’s Federation Account Allocation Committee (FAAC) share to service long-term multilateral and legacy loans—such as World Bank commitments—contracted under previous governments.
Despite these ongoing monthly deductions, the commissioner highlighted significant milestones achieved in stabilizing the state’s balance sheet:
83% Reduction in Total Debt: Tactical repayment strategies have trimmed Anambra’s total debt burden down by over 83 percent.
Near-Zero Domestic Liabilities: Legacy domestic obligations—including outstanding contractor payments, pension backlogs, and gratuity arrears—have been systematically paid off, leaving domestic debt near a zero balance.
Debt Payoffs: The administration recently completed the final settlement of specific multilateral obligations, including the CAGS debt scheme.
No Commercial Bank Debt: The state has financed its developmental initiatives without securing additional loans from commercial banking institutions.
Okafor emphasized that clearing these debt backlogs has successfully created expanded fiscal space for the state, enabling the current government to deploy resources directly into critical infrastructure and local development projects.
