Anambra State Governor, Professor Chukwuma Soludo, has categorically denied recent reports claiming that his administration is planning to borrow N245 billion to finance the state’s 2024 budget.
Speaking during a press briefing after a state broadcast commemorating the 33rd anniversary of Anambra State’s creation, Soludo dismissed the reports as “fake news” and assured the public that his administration remains committed to prudent financial management.
Addressing the media, Governor Soludo made it clear that throughout his nearly three-year tenure, he has not borrowed any money to fund the state’s projects.
He expressed surprise at the claims, emphasizing that neither he nor any member of his team has considered such a borrowing plan.
“The news that I want to borrow N245 billion to fund the 2024 budget is fake news,” Soludo said firmly.
“I have tried to find out from the rest of my team where that was coming from and to know if there are any such plans that I’m not aware of. So, it is certainly fake news.”
The governor used the opportunity to elaborate on his administration’s approach to borrowing.
He noted that while borrowing is a common practice among governments and businesses seeking to expand, his administration has adopted a highly cautious and selective approach.
“Every enterprise, whether private or government, that wants to scale up its activities will look at the cost of funds, the opportunity, and the time value of money.
“Borrowing today to provide goods and services that will generate enough resources to pay back tomorrow can make sense,” Soludo explained.
“However, under my watch, we have stringent criteria for borrowing. We are not just going to borrow to finance any project.”
In 2022, the Anambra State House of Assembly approved a supplementary budget that included a provision for the government to borrow N100 billion.
However, the governor pointed out that not a single kobo of that amount has been borrowed to date.
“Last year, we had a budget deficit of about N90 billion, and this year, we have a deficit of around N121 billion. Yet, until now, we have not borrowed one kobo of that,” Soludo stated.
“The reason is that we are focused on ensuring that any borrowing we undertake is for bankable projects—projects that will create value and generate resources to pay back.”
The governor highlighted ongoing major infrastructural projects in the state, which he believes will have a significant economic impact and generate the revenue needed to repay any future loans.
He assured the public that his administration would only approach the market to borrow funds when these projects are fully ready and the returns are clear.
In a related development, Soludo also addressed recent reports about states receiving N438 billion from the World Bank.
He confirmed that Anambra State deliberately opted out of this loan, a decision that he promised to explain in detail at a later time.
“Anambra’s name is not on that list because we chose to opt out,” the governor said. “We take the issue of borrowing very seriously, and we are not going to borrow unless we can clearly demonstrate where that money will go and what value it will add.”
“Even in our budget, the deficit we have is N121 billion. So how can you be planning to borrow N245 billion when you have a budget deficit of N121 billion? That makes it ridiculous in the first place,” Soludo argued.
“I don’t know where they got their source from, but wherever they got it, it is pure fake news.”
In his state broadcast, Governor Soludo also took the time to reflect on the progress Anambra State has made since its creation on August 27, 1991.
He praised the resilience and industriousness of the people of Anambra and noted that the state is now among the top five or six most viable economies in Nigeria.
“Thirty-three years after, we are on the right path,” Soludo said. “We rank among the top states in terms of economic viability, and in the poverty index, we rank the lowest.
“Anambra also boasts the largest urban cities with four major cities in the state. We rank lowest in out-of-school children in the country, which is indicative of the laurels we win in education. In health, we are second only to Lagos in terms of low infant mortality rates.”
