Former Anambra State Governor Peter Obi has rejected claims that he left the state with $123.77 million in debt when he left office in March 2014.
The Peter Obi debt controversy followed claims by the Anambra State Government that eight external loan facilities linked to his administration had left financial obligations for the state. The government said the facilities were worth about $123.77 million, with $92.35 million still outstanding as of June 30, 2026.
Obi disputed the presentation of the figures during an interview with Arise News on Thursday, September 24. He said the government must distinguish between an approved loan facility, the amount actually drawn and the amount still owed.
Peter Obi Debt Claim
Obi said an approved loan should not automatically be treated as money borrowed and spent by the government.
He used a N10 billion facility to explain his position. According to him, a bank could approve N10 billion for a government but the government might only draw N500 million.
In such a situation, Obi argued that the government should not be described as owing the full N10 billion because it did not receive the entire amount.
“Even if I had gone to the bank to borrow money but I didn’t spend the money, you cannot call it a debt I left,” he said.
He also criticised the way the figures had been presented. Obi described the approach as improper public-sector accounting and said officials should show the different layers of the financial arrangements.
The former governor also questioned how the $123.77 million figure was calculated. He said records from the Debt Management Office showed that Anambra’s foreign debt stood at about $18 million when he assumed office and about $30 million when he left in March 2014.
He further said the state’s foreign debt stood at about $45 million in December 2014, nine months after he left office.
Obi Explains World Bank Loans
Obi also disputed the description of several World Bank and International Fund for Agricultural Development facilities as loans directly borrowed by his administration.
He said the Federal Government obtained the concessionary development financing and later made the funds available to qualifying states for specific projects.
Some of the facilities listed by the Anambra Government involved projects in areas such as healthcare, education, agriculture and erosion control. The state has maintained that the facilities created financial obligations that it continues to service.
Obi, however, said the figures should not be combined and presented as money he personally borrowed on behalf of Anambra.
He also maintained that he did not approach any financial institution to borrow money or issue bonds for the state during his eight years as governor.
According to him, the records of his administration show the financial position of Anambra at the time he handed over power.
Obi said he left more than $150 million in funds, including investments, cash and foreign currency holdings. He challenged anyone questioning the figure to examine his handover documents and the bank statements attached to them.
The former governor also referred to Abraham Nwankwo, the former Director-General of the Debt Management Office.
Obi said Nwankwo invited him to chair his send-off ceremony after leaving office. He claimed the former DMO chief told guests that Obi was the only governor who had never visited his office to seek approval for borrowing.
The dispute has therefore centred on how the different financing facilities should be classified and how much Anambra actually owed when Obi left office.
While the state government has relied on debt records to support its position, Obi has challenged the interpretation of those figures and called for the actual drawdowns and outstanding balances to be examined separately.
The Peter Obi debt dispute remains tied to those competing interpretations of Anambra’s financial records and the loans associated with projects undertaken during his tenure.
