Anambra Corrects Peter Obi-Era Debt Figure to $123.77m, Lists Projects Behind $92.35m Balance

Anambra State Government has revised the external loans contracted during former Governor Peter Obi's tenure to $123.77 million, with $92.35 million still outstanding as of June 30, 2026. The correction replaces an earlier figure of $127.77 billion released on Wednesday, September 16, which the state later admitted was an error.

Using the exchange rate applied in its calculation, the state said the outstanding foreign debt was equivalent to about N127.37 billion. The government tied the borrowings to eight development projects, two of which account for more than $72 million of the balance.

How the Debt Breaks Down

The projects listed include Malaria Control Booster Project, Third National Fadama Development Project, Health System Development Project II, State Education Programme Investment Project, Community and Social Development Project, Nigeria Erosion and Watershed Management Project, and Value Chain Development Project.

The largest outstanding balance was $37.34 million under the State Education Programme Investment Project. The Nigeria Erosion and Watershed Management Project followed with $34.86 million unpaid, while Malaria Control Booster Project had $4.48 million remaining.

Unpaid Pensions and Gratuity Claims

Beyond the loans, the state alleged that Obi's administration left unpaid pension obligations, gratuity arrears, and salary backlogs owed to former Water Corporation staff and primary school teachers. It said it has spent more than N22 billion clearing inherited gratuity arrears.

Anambra Commissioner for Finance, Izuchukwu Okafor, said the current administration has not taken any commercial bank loan since coming into office. He said deductions continue from the state's Federation Account allocation to cover debts carried over from the administrations of Obi and his successor, Willie Obiano.

Obi Rejects Allegations

Obi rejected the allegations in full. He said his administration paid off historical gratuity and salary arrears totalling more than N35 billion. He also said he handed over in 2014 without leaving any unpaid salaries, pensions, gratuities, or certified contractor debts.

A separate dispute has emerged over a N2.13 billion ecological fund. Obi said the money was released close to the end of his term to address the Oko/Umuchiana erosion crisis. He said he deliberately left it untouched for the incoming administration because it was tied to that specific project. He pointed to a First Bank account at the Nnamdi Azikiwe University branch as holding more than N2.13 billion at the time he left office.

What It Means for the State's Finances

The revised debt figures and the unresolved claims keep attention on how much of Anambra's federal allocation is tied to inherited obligations. For businesses and consumers, continued deductions from the Federation Account can limit the state's fiscal space, even as the current government says it has avoided fresh commercial bank loans.

Nigeria's total external debt stock climbed to $51 billion, or N74.43 trillion, in the fourth quarter of 2025, according to the National Bureau of Statistics. External debt accounted for 46.73% of Nigeria's total public debt in the period. Lagos State emerged as Nigeria's most indebted subnational government in terms of external borrowing, the NBS data showed.