Debt dispute deepens as Anambra releases N363m document on workers’ arrears

The Anambra State Government has released a document showing the approval of N363.381m as the second tranche of salary arrears to workers, pensioners and next of kin of the defunct Anambra State Water Corporation and the Anambra State Environmental Protection Agency.

The document was released on Friday amid the ongoing dispute between the state government and ex-Governor Peter Obi over whether his administration left unpaid workers’ entitlements when he left office in 2014.

The document, dated May 24, 2025, was signed by the then Head of Service, Dame Theodora Okwy Igwegbe, and addressed to Governor Chukwuma Soludo.

The development was highlighted by the Anambra State New Media Office in a post on X on Friday.

The post was captioned, “PART 3: EVIDENCE THAT LYING IS IN PETER OBI’S DNA.”

It added, “The Soludo administration paid the first tranche of State workers’ entitlements—entitlements Peter Obi left unpaid during his eight years as governor. Gov Soludo has now, also, paid the second. Peter Obi knows we know he’s lying.”

The document sought approval for the release of N363,381,000 for the payment of the second tranche of salary arrears under an out-of-court settlement between the state government and the Amalgamated Union of Public Corporations, Civil Service, Technical and Recreational Services Employees.

It stated that the payment was part of the terms of settlement reached on February 6, 2024, concerning arrears owed to workers, pensioners and next of kin of the defunct Water Corporation and ANSEPA.

According to the document, the second tranche was due for disbursement in 2026.

The Head of Service wrote, “That the agreed second tranche payment of Three Hundred and Sixty-Three Million, Three Hundred and Eighty-One Thousand Naira only (N363,381,000.00) is due for disbursement in line with the Terms of Settlement signed on 6th February 2024.”

She added that the payment would be processed through the State Government Payroll System via a dedicated account.

The document further stated that the payment would “further reinforce your administration’s commitment to social justice, workers’ welfare, and adherence to agreements reached with organised labour”.

The latest disclosure comes days after Obi insisted that he left Anambra State without unpaid salaries, gratuities or pensions.

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Speaking on Arise TV’s Prime Time programme, Obi said, “On the day I left office, the government of Anambra State, which I headed, was not owing any salary, gratuity, or pension to those scheduled to be paid by the state government.”

He added, “We were not owing any contractor or supplier who executed his job, certified and verified—not one.”

Obi also rejected claims that he borrowed money or issued bonds on behalf of Anambra State during his eight years as governor.

“Let me categorically state again: I, Mr Peter Obi, did not approach any financial institution to borrow money or issue bonds on behalf of Anambra State in the eight years I was in government,” he said.

Explaining the funding arrangements linked to his administration, Obi said some of the facilities being attributed to his administration were concessionary multilateral support arranged through the Federal Government.

“There’s a difference between I went to the bank to borrow money, then the Federal Government sees, ‘Oh, this state is doing well in education.’ They selected Anambra, Ekiti, and Bauchi and said, ‘These three states are doing well. Why don’t we give them a concessionary multilateral support to help them?’” he said.

Obi also argued that undrawn funds under a facility should not be treated as debt incurred by his administration.

“Even if I had gone to a bank and borrowed money—even if I had gone to a bank and borrowed money, but I did not spend the money, you cannot call it debt I left,” he said.

The dispute over the workers’ arrears is part of a broader disagreement between Obi and the Soludo administration over the financial position of Anambra State when the former governor left office.

The Anambra State Government has maintained that it inherited outstanding liabilities from previous administrations, including salary, pension and gratuity arrears. It has said the Soludo administration has cleared about N22bn in inherited gratuity arrears, while some legacy arrears remain.

The state government has specifically said salary arrears involving staff of the defunct Water Corporation were eventually settled under the Soludo administration, with the first two of three instalments paid.

Obi, however, has maintained that his administration left office without outstanding salaries, pensions, gratuities or certified obligations to contractors.

The latest document shows the existence of the 2024 out-of-court settlement and the approval process for the N363.381m second tranche. It does not, by itself, establish when all the underlying arrears accrued or which administration was responsible for them.