Anambra Debt Row Deepens as Govt Releases N363m Workers’ Arrears Document

The Anambra State Government on Friday released a document approving N363.381 million for the second payment of salary arrears owed to workers, pensioners and next of kin of the former Anambra State Water Corporation and the Anambra State Environmental Protection Agency, as the dispute over financial obligations inherited from former Governor Peter Obi’s administration continues.

The document, dated May 24, 2025, was signed by the then Head of Service, Dame Theodora Okwy Igwegbe, and addressed to Governor Chukwuma Soludo. It was made public by the Anambra State New Media Office amid the ongoing disagreement between the state government and Obi over whether workers’ entitlements remained unpaid when he left office in 2014.

According to the document, the N363.381 million was the second tranche of payments covered by an out-of-court settlement reached between the state government and the Amalgamated Union of Public Corporations, Civil Service, Technical and Recreational Services Employees.

The settlement, reached on February 6, 2024, concerns outstanding payments involving workers, pensioners and next of kin connected to the defunct Water Corporation and ANSEPA.

The document stated that the second instalment was due for payment in 2026. It also requested approval for the funds to be processed through the state government’s payroll system using a dedicated account.

The latest disclosure followed comments by Obi, who recently maintained that his administration left Anambra without unpaid salaries, pensions or gratuities when he handed over power in 2014.

Obi also said his administration did not owe contractors or suppliers whose completed projects had been inspected, verified and certified for payment. He further rejected claims that he personally borrowed money or issued bonds on behalf of Anambra State during his eight years in office.

The former governor has also disputed the way some loans and financial facilities have been described as debts incurred by his administration. He argued that some of the funds associated with his tenure were concessionary support arranged through the Federal Government and that money that was approved but not drawn or spent should not automatically be treated as a debt left behind by his administration.

The Anambra State Government, however, has maintained that it inherited outstanding financial obligations from previous administrations. It has said the Soludo administration has paid billions of naira in inherited gratuity arrears, while other legacy obligations have continued to be addressed.

The state government has previously pointed to arrears involving former workers of the Water Corporation as part of the liabilities settled under Soludo. It said payments were being made in instalments in line with agreements reached with affected workers and their representatives.

The latest document provides evidence that an out-of-court settlement existed and that N363.381 million was approved as the second tranche under the agreement. However, the document alone does not establish the exact period when all the arrears accumulated or conclusively determine which administration was responsible for each outstanding payment.

The disagreement between Obi and the Soludo administration is part of a wider dispute over Anambra’s financial position at the time Obi left office and the liabilities later administrations inherited.

Both sides have continued to present different accounts of the state’s finances, with Obi maintaining that his administration settled the obligations that were due before his departure, while the current government says some outstanding liabilities were inherited and later settled under Soludo.