BudgiT Reveals The Anambra Governor That Recorded Lowest Domestic Debt Among States

BudgiT Reveals The Anambra Governor That Recorded Lowest Domestic Debt Among States

Willie Obiano

During the tenure of former Governor Willie Obiano, Anambra State demonstrated commendable fiscal discipline, maintaining a strong financial position. In 2021, Anambra ranked third in fiscal performance, distinguishing itself as the second-best performing state in the Southeast region.

Obiano, who led the state from 2014 to 2022, managed to keep Anambra’s debt levels among the lowest in the federation. A substantial portion of borrowed funds from development partners was allocated to critical physical infrastructure projects.

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According to BudgiT’s State of The States Report for 2021, Obiano’s administration gave priority to capital infrastructure investments, resulting in minimal operating expenses. Anambra’s total debt, including an external debt of $108.09 million, stood at N100.05 billion. Per capita debt in the state was N16,343, significantly below the national average of N27,316.

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The report revealed that Anambra under Obiano had one of the smallest domestic debts in the country, ranking 24th by size. Despite the fiscal challenges brought about by the Covid-19 pandemic, the state’s year-on-year Internally Generated Revenue (IGR) increased by 6.22% from N26.37 billion in 2019 to N28.01 billion in 2020.

Anambra was among the five states in the federation that emphasized investment in capital infrastructure over operating expenses in 2020, along with Ebonyi, Rivers, Cross River, and Kaduna. Out of the state’s total expenditure of N110.33 billion in 2020, 57% (N63.23 billion) was allocated to capital expenditure, while operating expenses accounted for N43.77 billion, and N3.32 billion was set aside for loan repayments.

In terms of debt burden, Lagos State emerged as the most indebted state, with a total debt of N1.04 trillion in 2020, up by 19.73% from N871.33 billion in 2019. Lagos also held the highest external debt of $1.41 billion, making it more susceptible to exchange rate fluctuations.

While Anambra demonstrated commendable fiscal performance in 2020, there remains room for improvement in boosting foreign trade and economic prosperity. The state has substantial untapped potential, particularly in natural gas and rice production, both domestically and for export markets. Collaborative efforts with neighboring states can further enhance economic opportunities and job creation.

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