Anambra says Peter Obi-era debt still totals $92.35m

For investors, the issue goes beyond the politics of one former governor. It speaks to how subnational debt is recorded, serviced and politically contested in Africa’s largest economy, where weaker fiscal transparency can complicate credit assessments, budget planning and the pricing of sovereign and state risk. Anambra said deductions continue from its Federation Account allocation to cover inherited obligations from both Obi and his successor, Willie Obiano, highlighting how old borrowing can still weigh on current cash flow.

The state tied the debt to eight projects, including education, erosion control, health, malaria, agriculture and social development programmes. The largest balances were attached to the State Education Programme Investment Project at $37.34 million and the Nigeria Erosion and Watershed Management Project at $34.86 million, together accounting for more than $72 million of the outstanding amount. Those are the kinds of loans governments often defend as productive, but they can still become politically toxic when repayment burdens linger long after the projects fade from public view.

Obi has rejected the allegations, saying he left office in 2014 without unpaid salaries, pensions, gratuities or certified contractor debts. He also said his administration had cleared more than N35 billion in historical arrears and disputed the state’s claim over a separate N2.13 billion ecological fund. That sets up a familiar Nigerian state-level clash: the current administration seeking to validate its fiscal housekeeping, while the former one argues the burden is being mischaracterised.

The economic backdrop makes the dispute more consequential. Nigeria’s public finances remain under strain, and the latest national debt data show external obligations still make up a large share of total public debt. In that environment, investors and lenders are likely to pay closer attention not just to headline debt levels, but to the quality of disclosure, the purpose of borrowing and the durability of repayment plans.

The immediate market impact is limited, but the longer-term significance is clearer: if subnational governments cannot consistently present credible debt accounts, the cost of future borrowing rises, oversight tightens and political disputes over past liabilities become part of the credit story. For Anambra, the battle is now as much about narrative control as it is about numbers.