The Anambra State Government has disclosed that it is still servicing loans inherited from previous administrations, including those of former governors Peter Obi and Willie Obiano.

The state Commissioner for Finance, Izuchukwu Okafor, made the disclosure during an appearance on the Ndi Anambra podcast produced by the state government’s New Media team.

Okafor explained that although the administration of Governor Chukwuma Soludo has avoided taking fresh commercial bank loans since assuming office, it continues to meet financial obligations arising from debts contracted by previous governments.

According to the commissioner, the inherited liabilities remain part of the state’s current financial commitments and continue to affect the allocation received by Anambra from the Federation Account.

He said the Soludo administration has largely focused on managing existing obligations and reducing the state’s debt burden rather than accumulating additional commercial debt.

“It’s on record that this administration has not borrowed a kobo from any commercial bank since the inception of this administration,” Okafor said.

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The commissioner explained that the absence of fresh commercial borrowing should not be interpreted to mean that Anambra has stopped making debt repayments.

He said deductions are still being made from funds due to the state through the Federation Account Allocation Committee (FAAC) to service loans obtained by previous administrations.

Okafor specifically attributed some of the outstanding loan obligations to the administrations of former governors Peter Obi and Willie Obiano.

“These loans were borrowed during the time of Peter Obi and Willie Obiano, the past governors,” he said.

The disclosure provides insight into the financial obligations inherited by the current administration and the challenges involved in managing the state’s resources while servicing existing debts.

The commissioner maintained that the Soludo administration has deliberately chosen not to contract new commercial bank loans since it assumed office.

Instead, the government has prioritised the repayment of existing obligations while seeking to manage available resources for other state programmes and projects.

The issue of inherited debt remains an important part of the financial management of many Nigerian states, as repayments can reduce the amount of funds available for infrastructure, public services and other government programmes.

For Anambra, the continued deductions from federal allocations mean that a portion of the state’s revenue is committed to servicing obligations incurred before the current administration came into office.

Okafor’s comments also provide the state government’s explanation of how its current debt position should be understood.

While the Soludo administration has maintained that it has not obtained fresh commercial bank loans, the state continues to carry liabilities from earlier borrowing arrangements.

The commissioner did not, in the statement, provide a detailed breakdown of the outstanding amounts attributed to each previous administration.

His disclosure nevertheless places the repayment of inherited loans at the centre of the state government’s ongoing financial management strategy.

The administration has repeatedly emphasised the need to manage public finances carefully while implementing its development agenda.

The latest comments are expected to contribute to the wider debate over borrowing, debt repayment and fiscal responsibility at the state level.

They also highlight the distinction between taking new loans and continuing to service debts that were contracted by previous administrations.

For Anambra residents, the repayment obligations remain a significant component of the state’s financial commitments, even as the current government maintains that it has refrained from adding new commercial bank debt to the existing burden.