The Anambra State Government has disclosed that it is still repaying loans inherited from previous administrations, including obligations dating back to the tenure of former governor and current Nigeria Democratic Congress (NDC) presidential candidate, Peter Obi.

The revelation has reopened a long-standing debate over the true state of Anambra’s finances at the end of Obi’s administration and the debt burden inherited by successive governments.

Speaking on the Voice of Ndi Anambra Podcast, the Commissioner for Finance, Izuchukwu Okafor, said substantial deductions continue to be made from the state's monthly federal allocation to offset loans obtained by past administrations.

According to him, the deductions are clearly reflected in the monthly Federation Account Allocation Committee (FAAC) statements received by the state government.

“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,” Okafor said.

He added that some of the liabilities being serviced were contracted during the administrations of Peter Obi, Willie Obiano and other former governors.

The commissioner’s remarks have revived one of Anambra’s most enduring political and financial controversies — the disagreement over what Obi left behind when he handed over power in 2014.

Following the transition to the Obiano administration, state officials had claimed that the new government inherited liabilities estimated at about ₦185 billion. However, Obi and his supporters consistently rejected the claim, insisting that he left significant cash reserves and investments rather than a heavily indebted state.

Over the years, the issue has generated heated political debates, with both camps presenting conflicting accounts of Anambra’s financial position.

Available records from the Debt Management Office (DMO) indicate that the state had outstanding debt obligations around the end of Obi’s tenure. Official figures showed that as of December 2013, Anambra’s external debt stood at approximately $30.3 million, while its domestic debt was about ₦3 billion.

The controversy has not been limited to liabilities alone. It has also extended to claims regarding the financial assets allegedly left behind by the Obi administration.

The former governor has repeatedly maintained that he left about $150 million in state savings and investments. However, independent fact-checks over the years have noted the absence of publicly available records conclusively verifying the exact amount.

The debate resurfaced once again in 2022 when Governor Chukwuma Soludo assumed office. Shortly after taking over, Soludo disclosed that audited accounts showed Anambra had debts exceeding ₦100 billion as of December 2021, while available cash balances stood at between ₦300 million and ₦400 million.

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Against this backdrop, Okafor said the Soludo administration had focused on reducing inherited liabilities rather than accumulating new debt.

He stated that the current government had not obtained any commercial bank loan since assuming office and had instead concentrated on paying off obligations left behind by previous administrations.

“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,” he said.

According to the commissioner, the state has reduced its overall debt profile by more than 83 per cent while also settling a large portion of domestic obligations, including unpaid contracts, pension liabilities and gratuities.

He explained that some outstanding debts still being serviced are external facilities secured from institutions such as the World Bank, with repayments automatically deducted from federal allocations due to the state.

Okafor also revealed that the government recently completed the repayment of a facility obtained under the Central Bank of Nigeria’s Commercial Agriculture Credit Scheme.

He said the aggressive debt-reduction strategy had expanded the state's financial capacity and created room for greater investment in development projects.

“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.

Beyond the financial implications, the latest comments are likely to carry political significance as the relationship between Obi and Soludo continues to attract public attention ahead of the 2027 elections.

Both men remain influential political figures in Anambra and on the national stage, and have occasionally disagreed publicly on governance and political issues.

One of their most notable exchanges came in 2025 when Soludo criticised politicians who campaign on promises to serve only one term in office. Although he did not mention Obi directly at the time, the comments were widely interpreted as a response to the former governor’s position on presidential tenure.

With fresh claims emerging over inherited debts and loan repayments, the debate over Anambra’s financial history appears far from settled, even as the Soludo administration continues to highlight its debt-reduction efforts as a major achievement of its economic management strategy.