The Anambra State Government is still servicing loans obtained by previous administrations under former governors Peter Obi and Willie Obiano, as the state continues efforts to reduce its debt burden.
The State Commissioner for Finance, Izuchukwu Okafor, disclosed this on Sunday during an edition of the Ndi Anambra podcast released by the state government’s New Media team.
Okafor explained that the Chukwuma Soludo administration inherited several financial obligations from past governments. He said these debts remain part of the state’s commitments even though the present administration has avoided taking new commercial bank loans since it assumed office.
According to the commissioner, the Soludo government has focused more on meeting existing debt obligations and managing the state’s finances rather than increasing its liabilities through fresh borrowing.
He said Anambra continues to make payments on loans secured by earlier administrations, with deductions still being made from the state’s allocations from the Federation Account Allocation Committee to service the debts.
Okafor identified some of the outstanding loans as facilities obtained during the administrations of Obi and Obiano.
He also maintained that the current government has not obtained any new loan from a commercial bank since taking office, saying the administration has instead concentrated on paying debts inherited from previous governments.
The commissioner’s statement provides an explanation of why deductions are still being made from Anambra’s federal allocations despite the state government’s decision to avoid fresh commercial borrowing under Soludo.
The state government has continued to manage its available resources while working to meet the financial obligations left behind by previous administrations.