The Anambra State Government has confirmed that ongoing deductions are being made from the state’s monthly Federation Account Allocation Committee (FAAC) revenue to service loans attributed to the administration of former Governor Peter Obi.
The state disclosed that these financial adjustments are currently being processed to settle debts incurred during the tenure of the previous leadership. The deductions are drawn directly from the funds allocated to Anambra State each month by the federal government.
According to the state, the loans in question were obtained by the Peter Obi administration. The current government is now responsible for servicing this debt, resulting in a reduction of the available funds for state operations.
The FAAC serves as the primary source of federal revenue distribution to Nigerian states. When deductions are applied to these allocations, the net amount received by the state government is reduced accordingly.
This development highlights the financial obligations inherited by the current Anambra State administration. The state has indicated that the repayment process is ongoing, with specific amounts being withheld from monthly disbursements.
<small>Source: AllAfrica Nigeria — read the original story there.</small>
