“I Haven’t Borrowed a Kobo Since Becoming Governor” – Soludo Says Nigeria’s Economy Is Stronger Now Than When He Took Office

• Governor Charles Soludo says Nigeria’s macroeconomic reforms have stabilised the economy, making it more attractive for investment and borrowing than it was a few years ago.
• The Anambra governor also disclosed that he has not borrowed a kobo since taking office, explaining that his administration previously withdrew from a World Bank loan because exchange rate volatility made it too costly despite its zero-interest terms.

Anambra State Governor Charles Soludo has said Nigeria’s recent macroeconomic reforms have created a more stable economic environment, declaring that the country is now on the path to growth. The governor also revealed that he has not borrowed a kobo since assuming office, explaining that previous economic conditions made foreign loans too expensive.

Speaking at an economic conference, Soludo said he agreed with the Minister of Finance and the keynote speaker that Nigeria’s economy had improved significantly.

“From a macroeconomic standpoint, Nigeria has stabilized and is on the rise,” he said.

Responding to comments made by another governor about avoiding loans, Soludo said, “You and I are on the same page. I haven’t borrowed a dime since I became governor. But I will hesitate to make the other one that you added, which is that you will never.”

The governor explained that shortly after taking office, Anambra State withdrew from an existing World Bank loan because of the country’s unstable exchange rate at the time.

“When I became governor, I pulled Anambra State out of an ongoing World Bank loan. Anambra was the only state that pulled out. Why? Because the macro fundamentals, the foreign exchange, the exchange rate distortions, were such that I told the World Bank that even at zero interest, it was still the most expensive fund in the world,” he said.

He added, “If you were giving me money, and I changed it at ₦460 to the dollar today, when I know that tomorrow it will be over ₦1,000, even if you lend it to me at zero, the effective interest rate in it is over 100%. And so that’s why Anambra pulled out.”

According to Soludo, the economic situation has changed considerably, making Nigeria a more attractive destination for investment and borrowing.

He said the country now has stronger external reserves, noting, “You now have net foreign reserves of a little over $40 billion and gross reserves of about $52 billion… and the exchange rate has become more stable, more predictable, to a large extent.”

The governor maintained that Nigerian states would continue to require foreign capital for development but stressed that the current economic environment is far more conducive to attracting such investments.

Reactions

@Epiphanus Ebuka: “No wonder Uzoma dey dance out of happiness.”

@GeneralGossips-GG: “When the head is rotten the root is affected.”

@Bari Aala: “On the mandate governors 😂.”

@Martin Okos: “You go soon dance big flex for Ose market.”

@Choice View: “Ozonna will hear this 😒.”

@Emeka Jones: “Not when a satchet of pure water is sold for 50-100 naira depending on the location.”

@Arm Samuel: “Peter Obi stabilized Anambra state government financial problems. Since he left obiano couldn’t borrow same as soludo.”

@Charles Okon: “We will know if u have borrowed or not after ur era.”

@KC Williams Eme: “Advise Tinubu to do the same.”