Anambra Debt Storm: Peter Obi Grilled Over State Finances, Counters With Handover Docs

The political landscape in Nigeria has been stirred by a contentious dispute between the presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, and the Anambra State Government concerning the financial state of Anambra at the end of Obi's tenure as governor. Obi initiated the challenge by releasing his handover document, which he claims disproves allegations of him leaving behind loans and other financial liabilities. This move followed the state government's earlier assertion that it was still servicing debts incurred by past administrations, including Obi's.

Obi's handover document, published by the Interim National Coordinator of the Obedient Movement, Dr. Yinusa Tanko, and dated March 17, 2014, presented a net positive balance of over ₦86 billion in Anambra State's financial position. The former governor firmly rejected the state government's claims, demanding evidence to support their position. He even declared that he would withdraw from his 2027 presidential campaign if the allegations against him could be substantiated. Specifically, Obi maintained that he left office without outstanding debts, unpaid financial obligations, and notably, over ₦2.13 billion untouched in an ecological fund account dedicated to the Oko/Umuchiana erosion crisis. He also stated his administration cleared more than ₦35 billion in historical gratuities and arrears.

However, the Anambra State Government, through its Commissioner for Finance, Izuchukwu Okafor, and later the Commissioner for Information and Value Reorientation, Law Mefor, maintained that records contradicted Obi's assertions. Okafor had stated that inherited loans remained a financial commitment for the current administration. Law Mefor, in a statement titled “Gov Peter Obi and Record of Public Debt in Anambra: Facts Beyond Propaganda and Lies,” explicitly described Obi’s position on the state’s debt profile as false. Mefor detailed that eight external loans, either connected to projects implemented during Obi’s administration or inherited by it, remained outstanding. These loans had a combined balance of $92.35 million, which the state government stated was equivalent to ₦127.37 billion as of June 30, 2026.

Further elaborating, the state government cited records from the Debt Management Office (DMO) indicating that these eight external loans, originally valued at $123.77 million, were contracted during Obi’s tenure and remained outstanding. The projects covered by these loans included the Malaria Control Booster Project, Third National Fadama Development Project, Health System Development Project II, Malaria Control Booster Project (Additional Financing), State Education Programme Investment Project, Community and Social Development Project, Nigeria Erosion and Watershed Management Project, and Value Chain Development Project. These initiatives spanned critical areas such as malaria control, healthcare, education, community development, erosion control, and agricultural value-chain development. The government clarified that while it is not opposed to borrowing for viable projects and human capital development, and the current administration continues to service these inherited liabilities, it questioned the impact of Obi's administration's substantial spending.

The government alleged that despite Obi spending approximately $4.05 billion during his eight years in office—an amount it equated to about ₦5.4 trillion at the current official exchange rate—significant challenges persisted. These included deficiencies in public water supply, education, healthcare, insecurity, and infrastructure. Specifically, the government claimed that 44 percent of communities (78 out of 179) in the state lacked public primary schools, and only about 27 percent of residents patronized public health institutions. The state also accused Obi of leaving behind unpaid salary, pension, and gratuity liabilities, noting that the current administration had cleared about ₦22 billion in inherited gratuity arrears owed to retired state and local government employees and teachers. Moreover, it stated that salary arrears for workers of the defunct Water Corporation, which the current administration had partly settled, and 16 months of primary school teachers' salary arrears, verified during Obi’s administration with only five months paid, were also inherited burdens. A committee, headed by the Head of Service, has since been constituted for a fresh verification of these outstanding liabilities.

A central point of contention revolves around Obi’s claim of leaving ₦2.13 billion in an ecological fund account for the Oko/Umuchiana erosion crisis. The state government refuted this, asserting that a certified statement of the account revealed it was an Internally Generated Revenue (IGR) consolidated revenue account, not an ecological fund. Furthermore, account records from its opening in 2011 to date showed no inflow or balance corresponding to ₦2.13 billion. Commissioner Mefor challenged Obi to explain the whereabouts of this money. The government also dismissed Obi's reported claim of N75 billion in savings or investment as "phantom," noting that this claim had been disputed by the previous administration as well.

This renewed dispute emerged in response to Obi's recent post on what he termed "Phantom Debts and Ecological Loan Fallacy." The political ramifications were underscored by a presidential aide, Onanuga, who, reacting on X, highlighted Obi’s earlier pledge to quit the presidential race if his financial claims were disproven. Onanuga stated, “Now, the Anambra government has confronted him with facts and figures showing he owed Water Corporation workers, teachers, and pension and gratuities, and had also borrowed for frivolous things,” concluding with the question, “The ball is back in his court. Will he follow through on his threat by quitting the race?” The ongoing confrontation continues to demand transparency and accountability regarding Anambra State's financial records from past administrations.