Peter Obi: I Never Borrowed Funds on Behalf of Anambra State

Former Anambra State Governor and 2027 presidential candidate of the New Democratic Congress (NDC), Peter Obi, has said he did not approach any financial institution to borrow money or issue a bond on behalf of Anambra State while he was governor.
“As Governor of Anambra State, I did not approach any financial institution to borrow funds or issue a bond on behalf of the state,” Obi said.
Obi made the statement while responding to claims surrounding the state’s multilateral development financing, which he said had been inaccurately described as “debt owed by Peter Obi.”
The former governor said the then Director-General of the Debt Management Office (DMO), Abraham Nwankwo, had confirmed his position during Obi’s farewell ceremony.
According to Obi, Nwankwo declared that during his 10 years as DMO director-general, Obi was the only state governor who had not approached him for a loan facility.
Obi also said he left office without unpaid salaries, gratuities or pensions, adding that the state did not owe contractors or suppliers who had completed work that was verified and certified by the government.
On the World Bank-related financing, Obi explained that the funds were concessionary development-support facilities secured by the Federal Government for selected states to address specific development needs.
He said repayment of such facilities was spread over periods of between 25 and 30 years.
Obi argued that the Anambra State Government must distinguish between the total amount approved for a multiyear development programme, the amount actually drawn by the state during his tenure and the amount outstanding when he handed over power on March 17, 2014.
He said the government had combined the different figures and described the resulting $123.77 million as “loans left by Peter Obi.”
Obi described that approach as an incorrect application of public-sector accounting.
He said the eight facilities identified were primarily World Bank and International Fund for Agricultural Development (IFAD) development programmes negotiated by the Federal Government, with participating states accessing the funds through subsidiary arrangements.
According to him, the facilities were not conventional commercial loans that he personally secured while serving as governor.
Obi, however, acknowledged that Anambra had repayment responsibilities under the facilities, stressing that each programme should be examined based on its approval, effectiveness, actual drawdown and repayment record.
He also cited DMO figures which, according to him, showed that Anambra’s external debt stood at about $18 million when he assumed office in March 2006 and approximately $30 million when he left office in March 2014.
He added that the figure was about $45.15 million as of December 31, 2014, nine months after his departure.
Obi consequently challenged the Anambra State Government to explain how the state could have supposedly inherited $123.77 million from his administration when its recorded external debt was about $30 million when he left office.
He called for a detailed reconciliation of the eight facilities, including the original approved amount, actual disbursements, funds drawn before March 17, 2014, the outstanding balance at handover and subsequent repayments.
Obi said such a breakdown would clarify the difference between funds approved for development programmes, funds actually accessed by Anambra State and liabilities outstanding when he handed over power.