The Anambra State Government has said it is still servicing loans and other debts incurred by previous administrations, including those of former governors Peter Obi and Willie Obiano.

The disclosure was made by the Commissioner for Finance, Izuchukwu Okafor.

Okafor stated that the current administration under Governor Chukwuma Soludo has not borrowed from any commercial bank since assuming office. However, monthly deductions continue to be made from the state’s Federation Account Allocation Committee funds to repay loans taken by earlier governments.

He explained that some of the outstanding loans date back to the tenures of Obi and Obiano. Despite this, the commissioner said the Soludo government has significantly reduced the state’s overall debt burden by more than 83 per cent.

The administration has also cleared several inherited domestic obligations, including unpaid contracts, gratuity arrears and pension arrears. According to Okafor, the state’s domestic debt is now nearly at zero.

On external debts, he noted that some repayments are automatically deducted from federal allocations due to the terms of the loans, particularly those from the World Bank. Okafor said the debt-management strategy has created more fiscal space for the state to pursue its development priorities.

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