Peter Obi's Anambra Legacy: Ex-Gov Denies Debt, Claims $150M Funds

A long-standing financial controversy surrounding former Anambra State Governor, Peter Obi, has resurfaced, with current Abia State Governor Alex Otti corroborating Obi's prudent management of funds, while Obi himself vehemently refutes claims of leaving the state in debt.

Abia State Governor Alex Otti recently affirmed his 2020 statement concerning Peter Obi's handling of $155 million during his tenure as Anambra State Governor. In an interview with Arise Television, Otti clarified that his original statement, penned on June 8, 2020, aimed to illustrate that public officials could indeed manage government resources prudently. Otti recounted advising Obi, then Governor, to convert naira funds to dollars as he was the CEO of a bank at the time, to prevent the currency from losing value. This conversion, Otti stated, was a "statement of fact" that occurred "several years, six years ago."

Meanwhile, Peter Obi, now a presidential candidate for the Nigeria Democratic Congress (NDC), has dismissed allegations from the Anambra State government that he left the state with $123 million in debt. Obi insists that he handed over Anambra State in a robust financial position, backed by more than $150 million in funds. He has openly challenged the state government to provide concrete evidence for their claims, vowing to withdraw from his presidential campaign if their allegations prove true. Obi characterized the state's accounting of his financial legacy as "very wrong public accounting."

Elaborating on his position during an Arise News interview, Obi argued that even if one were to assume the alleged $123.7 million debt was accurate, the over $150 million he left behind, which was reportedly earning approximately $10 million annually, would have been sufficient to clear the debt while preserving the capital and continuing to generate income. He unequivocally stated that throughout his eight years as governor, he never approached any financial institution to borrow money or issue bonds on behalf of Anambra State. Furthermore, Obi emphasized that upon his departure in March 2014, his administration owed no salaries, gratuities, pensions, or verified and certified contractors.

Regarding specific financial instruments like World Bank and IFAD loans, Obi clarified that these were concessionary development facilities secured by the Federal Government of Nigeria and subsequently on-lent to qualifying states for particular projects. He noted that these facilities were payable over 25 to 35 years. Obi highlighted that Anambra’s foreign debt increased from approximately $18 million when he took office to $30 million by the time he left in March 2014. By December 2014, nine months after his exit, the total foreign debt stood at $45 million. However, he maintained that the initial $150 million in funds he left, if managed as intended, could have paid off the foreign debt and left about $240 million in reserves, generating at least $20 million annually for the state.

Adding further weight to his claims, Obi cited Abraham Nwankwo, the then Director-General of the Debt Management Office (DMO) for 10 years, who publicly acknowledged Obi as the only governor during his tenure who never sought DMO approval to borrow money. Obi stressed that borrowing by state governors requires Federal Government approval, which he never pursued. To substantiate his assertions, Obi presented his handover documents, containing detailed records of cash, investments, and foreign currency holdings, including bank statements verifying the $150 million. He urged relevant institutions and banks to publish and verify these financial records. Addressing potential political motivations, Obi stated he had no conflict with the Anambra State Government and prayed for Governor Soludo and other governors to focus on state development amidst Nigeria's challenging situation.