The Anambra State Government is still servicing loans inherited from the administrations of former governors Peter Obi and Willie Obiano, the state Commissioner for Finance, Izuchukwu Okafor, has disclosed.
Okafor made the disclosure during a Ndi Anambra podcast uploaded by Anambra State New Media on Monday.
He said the administration of Governor Chukwuma Soludo had not borrowed from any commercial bank since assuming office.
According to him, however, the state continues to repay loans secured 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 explained that deductions are made from Anambra’s monthly Federation Account Allocation Committee funds to service the inherited loans.
The commissioner said the deductions are reflected in the state’s monthly allocation schedules.
He specifically identified the administrations of Obi and Obiano among those whose loans are still being repaid by the state.
Despite the inherited obligations, Okafor said the Soludo administration had significantly reduced Anambra’s overall debt burden.
He claimed that the state’s debt had been reduced by more than 83 per cent under Soludo.
“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 said.
Okafor also said the government had cleared several legacy domestic liabilities.
These included unpaid contracts, gratuities and pension arrears inherited from previous administrations.
He put the state’s current domestic debt position at nearly zero.
“In terms of our domestic debt, as of today, it is near-zero balance,” the commissioner said.
However, he noted that Anambra still has some external debts inherited from previous governments.
Repayments on some of the loans are automatically deducted from federal allocations under the terms of the borrowing agreements.
The deductions consequently reduce the funds available to the state each month.
Okafor maintained that the Soludo administration had focused on managing inherited liabilities without taking new commercial bank loans.
He said the government would continue to meet its debt obligations while working to further reduce the state’s financial burden.
