No plan to borrow N245bn to fund 2024 budget, says Soludo

Governor Charles Soludo of Anambra State has refuted reports suggesting the state plans to borrow N245 billion to finance its 2024 budget. Soludo had, last year, announced a proposal to borrow N120 billion to fund the 2024 budget deficit when presenting the N410 billion estimate to the state House of Assembly for approval. Speaking yesterday […]

Governor Charles Soludo of Anambra State has refuted reports suggesting the state plans to borrow N245 billion to finance its 2024 budget.

Soludo had, last year, announced a proposal to borrow N120 billion to fund the 2024 budget deficit when presenting the N410 billion estimate to the state House of Assembly for approval.

Speaking yesterday during an event marking 33 years since the state’s creation, Soludo said borrowing N245 billion while facing a deficit of N121 billion for the 2024 budget was not feasible.

“The claim that Anambra is planning to borrow N245 billion for the 2024 budget is false, and I am unsure of the source of this misinformation,” Soludo said.

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He explained that while borrowing can be a strategic move to provide goods and services today, it must be balanced by future economic returns.

He said, “This administration has a clear stance on borrowing, adhering to stringent criteria. In 2022, the State House of Assembly approved borrowing N100 billion for a supplementary budget, but we have yet to borrow any of that amount.

Similarly, for 2023, despite a budget deficit of about N90 billion, no borrowing occurred. This year, we have a deficit of about N121 billion, and we have not borrowed a kobo for that either.”

Soludo emphasised that the state’s borrowing strategy focuses solely on funding projects with a high likelihood of generating returns sufficient to repay the debt.