Former Anambra State Governor and presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has challenged the state government’s description of US$123.77 million in multilateral development funding as debt inherited from his administration, saying the figure conflates approved facilities, actual drawdowns and outstanding balances.
Obi said the facilities, which were primarily World Bank and International Fund for Agricultural Development (IFAD) development programmes, were negotiated by the Federal Government, with participating states accessing the funds through subsidiary arrangements.
He made the clarification in a post on X, formerly Twitter on Friday, following recent public discussions over Anambra State’s debt profile and the financial position he left behind when he handed over power in March 2014.
According to Obi, the Anambra Government needs to distinguish between the total amount approved for the multiyear development programmes, the amount actually drawn by the state during his tenure and the funding balance outstanding when he left office.
He alleged that the government had combined the different categories and presented the resulting US$123.77 million as “loans left by Peter Obi”, describing the presentation as an incorrect application of public-sector accounting.
“The Anambra State Government must therefore differentiate among three separate figures: the total amount approved for the multiyear development programme; the amount Anambra State actually drew during my tenure; and the funding balance outstanding when I handed over on 17 March 2014.”
Obi also cited figures published by the Debt Management Office (DMO), saying Anambra’s total external debt stood at approximately US$18 million when he assumed office in March 2006, about US$30 million when he left office in March 2014, and approximately US$45.15 million as of December 31, 2014.
He questioned how the state could have inherited US$123.77 million from his administration when, according to the DMO figures he cited, its recorded external debt was about US$30 million at the time he handed over.
“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.”
Obi, however, acknowledged that the state had repayment responsibilities under the development financing arrangements, stressing that each facility should be examined based on its approval, effectiveness, drawdown and repayment history.
He said the facilities were concessionary development-support funds secured by the Federal Government for states selected to address specific development needs, with repayment spread over periods of between 25 and 30 years.
The former governor also rejected the suggestion that his administration left Anambra in a weak financial position, saying the state had no unpaid salaries, gratuities or pensions when he left office.
He added that the government did not owe contractors or suppliers who had completed work that had been verified and certified.
Obi further claimed that he left more than US$150 million as the dollar component of his investment in Anambra State at the end of his tenure, saying documents supporting the claim could be verified with the relevant banks.
According to him, the funds, if left untouched, were expected to generate about US$10 million annually for the state.
He argued that even if the state’s claim of a US$123 million debt were accurate, the annual income from the funds could have been used to substantially reduce or settle the obligation over the 13 years since he left office.
Obi said retaining the funds, together with compound interest and additional income, would have placed their value at approximately US$335 million today.
He further estimated that if US$92.35 million of the alleged outstanding funding had been repaid from the funds, about US$242 million would have remained for reinvestment, potentially generating approximately US$20 million annually for the state.
Obi said he had chosen to remain silent over the recent controversy because he had been mourning the death of his elder brother and friend, Chief Okey Ezeibe.
He also said he had no disagreement with Governor Chukwuma Soludo or any other governor and was not seeking the governorship of any state.
“I will neither engage nor trade words with anyone regarding my tenure in Anambra State. My focus will now be on issues affecting the suffering Nigerian masses, which is the reason for my presidential ambition.”
He maintained that he left Anambra State in a strong financial position, describing it as the strongest of any state in Nigeria at the time.
Obi said his focus would now remain on national issues and the welfare of Nigerians, concluding with his familiar political message: “A new Nigeria is POssible.”
