Anambra State Governor, Chukwuma Soludo, has disclosed that his administration has not taken any loans since he assumed office, although he said he would not rule out borrowing in the future if economic conditions make it worthwhile.
Soludo made the remarks on Monday, August 3, at the Delta State Economic and Investment Summit 2026, while reacting to comments by Delta State Governor, Sheriff Oborevwori, who declared that his government had not borrowed from any financial institution and had no plans to do so.
Speaking at the summit, Oborevwori said, “Despite the huge investment in improving public infrastructure, we have not borrowed a kobo from any bank, and we do not intend to borrow.”
Responding, Soludo said Anambra had maintained a similar record but was unwilling to make a permanent commitment against future borrowing.
“I haven’t borrowed a dime since I became governor. But I will hesitate to make the other one that you added, which is that you will never,” Soludo said.
The former Central Bank governor explained that his decision to avoid borrowing in the early days of his administration was driven by Nigeria’s unstable macroeconomic environment, particularly exchange rate volatility.
He revealed that shortly after taking office, Anambra withdrew from the World Bank-funded NG-CARES programme because he believed the prevailing exchange rate conditions would make repayment excessively costly despite the facility’s low interest rate.
“When I became governor, I pulled Anambra state out of an ongoing World Bank loan, NG CARES, and Anambra was the only state that pulled out,” he said.
“The macro fundamentals, the foreign exchange, and the exchange rate distortions, were such that I told the World Bank that even at zero interest, it was still the most expensive fund in the world…
“If you were giving me money and I change it at N460 to the dollar today, when I know that tomorrow it will be over a thousand, even if you lend it to me at zero, the effective interest rate in it is over 100 percent.”
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Soludo, however, said the economic landscape has changed considerably, pointing to stronger foreign reserves and greater stability in the foreign exchange market.
According to him, Nigeria has shifted from an era of heavy capital flight to one where the economy is better positioned to attract investments.
“And therefore, breaking the paradoxes of the Nigerian economy, we are a capital-scarce economy but prior to 2023, was having a massive capital flight, double jeopardy,” Soludo said.
“You have capital scarcity but also losing capital in droves. Today, it is more reversed
“You now have net foreign exchange reserves of about a little over 40 billion and gross reserves of about $52 billion… and the exchange rate has become stable, more stable, predictable to a large extent.”
The governor argued that both the Federal Government and state governments would still require foreign capital to finance long-term development, adding that the current macroeconomic environment provides a more favourable climate for investment.
“And therefore, Delta and Nigerian economy and sub-nationals will require foreign capital, be they Africa, be they from anywhere, will require foreign capital. And the environment, the macroeconomic environment, is more conducive today,” he added.
Soludo nevertheless acknowledged that Delta State’s oil revenues may allow it to avoid borrowing more easily than many other states.
“Maybe Delta, you are my rich neighbour, you have a lot of oil money and so on. So, Delta can afford it. I’m not sure how many others can afford to do that,” he said.