Former Anambra State Governor and Nigeria Democratic Congress (NDC) presidential candidate, Peter Obi, has rejected the claim that he left the state with $123.77 million in debt when he handed over power in March 2014.
Obi said the figure being attributed to his administration represented a combination of approved multilateral development financing, funds drawn under the various programmes and outstanding balances, rather than conventional loans obtained by him on behalf of the state.
He made the clarification in a statement on Friday, following renewed public discussion over Anambra’s debt profile.
Obi said he had stayed away from the controversy in recent days because he was mourning his elder brother and friend, Chief Okey Ezeibe.
He also dismissed suggestions of a disagreement between him and Governor Chukwuma Soludo, saying his intervention was aimed at clarifying the records rather than engaging in a political dispute.
“I wish to assure the public that I have no disagreement with my dear elder brother, Governor Soludo, or with any governor in Nigeria,” he said.
“I am not seeking the office of governor in any state, and I will not seek that position again, even if the Constitution is amended.”
According to Obi, he did not obtain any loan or issue a bond on behalf of Anambra State throughout his tenure as governor.
“Regarding the multilateral funding inaccurately described as ‘debt owed by Peter Obi’ in Anambra State, I wish to state unequivocally: As Governor of Anambra State, I did not approach any financial institution to borrow funds or issue a bond on behalf of the state,” he said.
He recalled that Abraham Nwankwo, who was Director-General of the Debt Management Office during his tenure, had recognised the position at his farewell ceremony.
“Indeed, at his farewell ceremony, the then Director-General of the DMO, Abraham Nwankwo, appointed me chairman and declared that, during his 10 years in office, I was the only state governor who had not approached him for a loan facility,” Obi said.
The former governor also said his administration left behind no arrears of salaries, gratuities or pensions.
“When I left office, the Anambra State Government owed no unpaid salaries, gratuities, or pensions. Neither did it owe any contractor or supplier who had completed work that the government had verified and certified,” he said.
Obi challenges classification of development funds
Obi said the financing arrangements in question were largely concessionary development funds secured by the Federal Government for states selected to implement specific programmes.
He said the facilities, which included World Bank and International Fund for Agricultural Development (IFAD) programmes, had repayment periods of between 25 and 30 years.
He argued that the state government needed to distinguish between the amount approved for a programme, the amount actually drawn and the balance outstanding at the time he left office.
“The Anambra State Government must therefore differentiate among three separate figures: the total amount approved for the multiyear development program; the amount Anambra State actually drew during my tenure; and the funding balance outstanding when I handed over on 17 March 2014,” he said.
Obi accused the state government of combining the different figures and presenting the total as debt inherited from his administration.
“The government has combined these distinct categories, added them together, and described the resulting US$123.77 million as ‘loans left by Peter Obi’. That is an incorrect application of public-sector accounting,” he said.
He explained that the facilities were negotiated by the Federal Government, with participating states accessing the funds through subsidiary arrangements.
“The eight facilities identified were primarily World Bank and IFAD development programs negotiated by the Federal Government, with participating states receiving access to the funds through subsidiary arrangements,” he said.
“They were not conventional commercial loans that I personally secured during my tenure.”
Obi acknowledged that the state had repayment obligations under the financing arrangements but insisted that each facility should be examined on its individual terms.
“This does not suggest that Anambra had no repayment responsibilities; rather, each facility must be examined in light of its approval, effectiveness, drawdown, and repayment record,” he said.
Former governor cites debt records
Obi also questioned the figures being used to support the claim that his administration left $123.77 million in debt.
“The clearest contradiction appears in the government’s own figures,” he said.
According to him, DMO records showed Anambra’s external debt at approximately $18 million when he assumed office in March 2006, about $30 million when he left office in March 2014 and approximately $45.15 million by December 31, 2014.
He therefore demanded an explanation for the disparity between those figures and the $123.77 million being attributed to his administration.
“The Anambra State Government must therefore clarify how a state whose recorded external debt was about US$30 million in March 2014 and US$45.15 million in December 2014 could supposedly have inherited US$123.77 million from Peter Obi, who left office in March of that same year,” he said.
Obi further revisited the financial position he claimed to have left behind in Anambra, saying more than $150 million was left as the dollar component of his investment in the state.
“On the day I left office, I left more than US$150 million as the dollar component of my investment in Anambra State as governor,” he said.
He said documents relating to the funds had been provided and could be verified with the relevant banks.
According to him, the investment could have generated approximately $10 million annually for the state.
“Had it remained untouched, this investment was expected to provide Anambra State with approximately US$10 million in annual income,” he said.
Obi argued that the income could have been deployed towards servicing the alleged debt if the state government accepted the $123 million figure.
“Even if their assertion were accurate—which it is not—that Anambra owed US$123 million, the government could have used the US$10 million generated annually from my savings to reduce the debt,” he said.
He calculated that the projected income over 13 years would have amounted to about $130 million.
He further claimed that, with compound interest and additional income, the funds could have grown to approximately $335 million.
“If they had chosen to repay the US$92.35 million funding, the entire amount would have been covered, leaving approximately US$242 million to be reinvested. That sum would have generated about US$20 million annually for Anambra State,” he said.
Obi maintained that his administration left Anambra in what he described as a strong financial position.
“Let me reiterate that, when I left office, I left Anambra State in a strong financial position—the strongest of any state in Nigeria—and I stand by that position,” he said.
Obi urges focus on Nigerians' hardship
The former governor said he did not intend to engage in a prolonged exchange over his record in Anambra.
“Through this clarification, I wish to state categorically that I will neither engage nor trade words with anyone regarding my tenure in Anambra State,” he said.
Instead, he urged political leaders to focus on the economic difficulties confronting Nigerians.
“I respectfully urge everyone to concentrate on the existential challenges confronting Nigeria and the hardships endured by its citizens, rather than on the needless distractions that have become widespread in our politics,” he said.
Obi also appealed to governors to allow presidential and other political candidates to campaign freely in their states, irrespective of party affiliation.
“Accordingly, I appeal to governors to support whichever presidential candidate they choose while also permitting and assisting other presidential candidates and contenders for other offices to campaign freely and without interruption in their states,” he said.
“Ultimately, voters should be allowed to determine whom they wish to serve them.”
He said his focus would remain on the challenges confronting Nigerians, which he described as the motivation for his presidential ambition.
“My focus will now be on issues affecting the suffering Nigerian masses, which is the reason for my presidential ambition,” Obi said.
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