Abia State Governor Alex Otti has stated that Peter Obi, the presidential candidate of the Nigeria Democratic Congress (NDC), saved $155 million in the coffers of Anambra State Government during his time as governor. Mr. Otti made this revelation during an interview with Arise News on Friday morning. At the time, Mr. Otti was the Chief Executive of Diamond Bank, which later merged with Access Bank in 2019.
Mr. Otti's comment comes amid controversies surrounding the financial situation of Anambra State when Mr. Obi left office as governor. The Anambra State Government has claimed that Mr. Obi left an external debt of $123.7 million incurred from eight foreign loans. However, Mr. Obi has denied taking any loans, stating that the eight facilities were "concessionary development-support funds secured by the federal government for states selected for it to address specific needs."
Mr. Obi argued that even if the $123.7 million debt was true, his over $150 million savings or the $10 million income the savings had been generating annually was enough to cover the debts. Mr. Otti recalled that he had provided details of Mr. Obi's $155 million savings in a column published in ThisDay Newspaper in 2020. The governor stressed that he stood by his words, emphasizing that he authored the piece to make a case about financial prudence.
In the column titled "The Triumph of Profligacy Over Prudence," Mr. Otti wrote that Mr. Obi managed "to clear all debts" and left funds for his successor before giving details about the $155 million savings. Mr. Otti explained that the $155 million was invested in the tier two capital of three Nigerian banks with maturities of about 5 years at interest rates of up to 9% per annum to the credit of the state.
According to Mr. Otti, the Naira equivalent of the funds at the time of Mr. Obi's investment was about N25 billion. If those funds were rolled over at maturity in 2019, they would be worth about N62 billion today. With interest assumed to remain at 9% for the past 6 years, an additional N33.5 billion would have accrued, bringing the present value of the investments to over N95 billion.
Mr. Otti stressed that although the Anambra State Government had been accusing Mr. Obi of leaving debts behind, the accusations do not dismiss his submission that the former governor left $155 million in savings. The governor recalled what happened between him and Mr. Obi at the time, stating that Mr. Obi was going to leave the money in Naira but was advised to convert it to dollars due to the Naira's potential loss in value.
The Abia governor's revelation has brought attention to Mr. Obi's financial management during his tenure as governor of Anambra State from 2006 to 2014. Mr. Otti's statement is seen as a testament to Mr. Obi's financial prudence and leadership, which has been praised by many as an example of excellent leadership and accountability.
Key points
- Peter Obi saved $155 million in Anambra State coffers during his tenure as governor.
- The savings was invested in three Nigerian banks with maturities of about 5 years at interest rates of up to 9% per annum.
- The present value of the investments is estimated to be over N95 billion.
