Obi-Soludo debt row deepens as Anambra releases N363m document on workers’ arrears after Obi denied borrowing

The Anambra State Government has released a document approving the payment of N363.381 million as the second tranche of salary arrears owed to workers, pensioners and next of kin of the defunct Anambra State Water Corporation and the Anambra State Environmental Protection Agency (ANSEPA).

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 disclosure came amid the ongoing dispute between the Anambra State Government and former governor Peter Obi over whether his administration left outstanding workers’ entitlements when he left office.

The document seeks approval for the release of N363,381,000 for the second tranche of payments 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 settlement covered 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 and was part of the terms of settlement reached on February 6, 2024.

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.”

The document further stated that the payment would be processed through the State Government Payroll System through a dedicated account.

It added that the payment would reinforce the state government’s commitment to workers’ welfare, social justice and compliance with agreements reached with organised labour.

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

The post described the document as evidence that Obi left unpaid entitlements, stating that the Soludo administration had paid the first tranche and was proceeding with the second.

The state government has previously said it inherited outstanding liabilities from earlier administrations and has highlighted the settlement of legacy salary, pension and gratuity obligations as part of the Soludo administration’s record.

An official Anambra government presentation had earlier stated that an out-of-court settlement of a dispute between the state government and staff of the defunct Water Corporation and ANSEPA had been concluded, with payment approved for the first tranche of the state’s obligation.

The state’s 2024 Appropriation Law also contained a N500 million provision for settlement of the dispute between the Anambra State Government and staff of the defunct Water Corporation.

Obi Maintains He Left No Unpaid Entitlements

The latest disclosure comes against the backdrop of repeated statements by Obi that he left Anambra State without outstanding salaries, gratuities or pensions when he handed over power.

In a recent interview with Arise News, Obi maintained that the state owed nothing in salaries, gratuities or pensions at the time he left office and challenged his critics to provide evidence to the contrary.

“On the day I left office, the government of Anambra State, which I served, was not owing any salary, gratuity, or pension to those scheduled to be paid by the state government,” Obi said.

He also maintained that his administration did not owe contractors or suppliers whose projects had been completed, certified and verified.

Obi has separately rejected claims that he borrowed money or issued bonds on behalf of Anambra State during his tenure, arguing that some facilities attributed to his administration were concessionary multilateral support arranged through the Federal Government.

He has also disputed the state government’s claims concerning external loans, insisting that the financial position of the state at the point of handover was being misrepresented.

Broader Financial Dispute

The disagreement over the Water Corporation and ANSEPA arrears forms part of a wider dispute between Obi and the Soludo administration over the financial position of Anambra State when Obi left office.

The state government has argued that records show outstanding liabilities associated with Obi’s tenure, while Obi has maintained that he left the state without unpaid salaries, pensions, gratuities or certified contractor obligations.

The Presidency and the APC Presidential Campaign Council have also recently cited the Anambra government’s claims in their criticism of Obi’s presidential bid, while Obi has continued to challenge his critics to produce documentary evidence supporting their allegations.

The latest N363.381 million document establishes the existence of a 2024 out-of-court settlement and an approval process for the second tranche of payment to affected workers, pensioners and next of kin.

However, the document alone does not establish precisely when all the underlying arrears accrued, nor does it determine which administration was responsible for each component of the liabilities.

The question of when the arrears accumulated and which administration incurred or inherited them therefore remains part of the broader dispute between the Anambra State Government and Obi.

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