Former Anambra State Governor and presidential candidate of the Nigeria Democratic Congress (NDC), Peter Obi, has dismissed claims that he left the state with outstanding debt when he handed over power in 2014.
Obi said he left more than $150 million in investments for the state, arguing that the funds were sufficient to offset the $123.77 million debt recently attributed to his administration. 
He made the statement on Thursday during an interview with Arise News, while responding to claims by the Anambra State Government that his administration left behind loans and other liabilities.
The state Commissioner for Information and Value Reorientation, Law Mefor, had alleged that Obi left $123.77 million in debt at the end of his tenure.
Mefor said the funds were obtained to finance projects covering malaria control, education, healthcare, erosion management, community development and value-chain development.
But Obi disputed the characterization of the funds as loans obtained by his administration from commercial banks.
“I told you these are not loans. I didn’t go to the bank,” Obi said.
He explained that the dollar-denominated portion of the state’s savings and investments in various bonds stood at more than $150 million when he left office.
According to him, the investments generated about $10 million annually for Anambra State.
Obi argued that even if the $123.7 million debt figure were accepted, the funds he left behind would have been sufficient to repay the alleged debt while preserving the state’s capital.
“As at the time I left office, the dollar components of my savings invested in various bonds were over $150 million, which gives Anambra State guaranteed income of about $10 million yearly,” he said.
“Let me assume the worst-case scenario — which is false — that there was $123.7 million owed as of the time I left. I left over $150 million that was earning about $10 million.
“If they just kept the money that I left and were using the income to pay the loan, they would have finished paying it now, with the capital of $150 million still remaining, and still giving Anambra State $10 million annually.”
The former governor likened the situation to inheriting an asset alongside an obligation, arguing that it would be misleading to describe the inheritance simply as a debt.
“Assuming your father left you an inheritance of $100 million, and suddenly somebody comes up and says your father is owing $10 million, are you going to go to the market and say your father left you with debts? You would be unfair,” he said.
Obi also distinguished between conventional borrowing and concessionary financing or support provided through multilateral institutions.
He said some of the funds were facilitated through collaboration between the Federal Government and the World Bank, with Anambra, Ekiti and Bauchi selected for support because of their performance in education.
“They selected Anambra, Ekiti and Bauchi because these three states were doing well in education and said, ‘Why don’t we give them concessionary multilateral support to help them do better?’” Obi said.
“It was a decision made by the Federal Government and the World Bank to give support.”
Obi maintained that, regardless of how the liabilities were classified, the financial resources he left behind were sufficient to cover the alleged debt.
The competing claims have renewed debate over the nature of the obligations inherited by successive administrations in Anambra and the financial position of the state at the end of Obi’s tenure in 2014.
