Anambra Governor Chukwuma Soludo explains why he rejected a World Bank loan despite a zero-interest offer, praises Tinubu’s reforms and urges greater investment in Nigeria
Why I Pulled Anambra Out of World Bank Loan Despite Zero Interest Offer — Soludo
Anambra State Governor Chukwuma Soludo has revealed that his administration withdrew from a World Bank-backed programme because the facility had become too expensive as a result of Nigeria’s foreign exchange realities, insisting that even a zero-interest loan would have imposed an unsustainable financial burden on the state.
Speaking on Monday at the Delta State Economic and Investment Summit in Asaba, Soludo said Anambra was the only state to exit the World Bank programme after he assumed office, arguing that exchange rate distortions had made the facility economically unviable.
“When I became Governor, I withdrew Anambra State from an ongoing World Bank programme. Anambra was the only state that pulled out. Why? Because the macroeconomic fundamentals, particularly the foreign exchange distortions, were such that I told the World Bank that even at zero per cent interest, it was still the most expensive loan in the world.
“Because if you gave me money and I converted it at N460 to the dollar, knowing that the exchange rate would soon move beyond N1,000 to the dollar, then even at zero interest, the effective cost of that loan would exceed 100 per cent. That is why Anambra pulled out,” he said, adding that the situation has since changed.
The former Central Bank governor said President Bola Tinubu’s economic reforms had altered Nigeria’s macroeconomic outlook, creating a more stable environment capable of attracting both domestic and foreign investment.
According to him, the country has moved away from an era of severe capital shortages and persistent capital flight, with improvements in foreign reserves and exchange rate stability strengthening investor confidence.
“You and I are on the same page. I haven’t borrowed a dime since I became Governor. However, I would hesitate to make the additional statement you made—that you will never borrow.
“If you look at what you’ve just said, and indeed as the theme of this conference—’Unlocking Opportunities,’ Nigeria presents a paradox. The macroeconomic stability we have achieved is something to celebrate because we must remember where we are coming from.
“In breaking the paradox of the Nigerian economy, we have moved from being a capital-scarce economy that was simultaneously experiencing massive capital flight—a double jeopardy—to one that is seeing improvements.
“Today, we have net foreign exchange reserves of a little over $40 billion and gross reserves of about $52 billion. The exchange rate has become much more stable and predictable.
“Therefore, Delta State, Nigeria and indeed all our sub-national governments will require capital—whether African capital or capital from anywhere else in the world. We need investment, and today’s macroeconomic environment is far more supportive of that.
“So, I wouldn’t make borrowing an absolute principle, rather, I would say: don’t borrow unnecessarily, but welcome investment. As was rightly said, you may not borrow, but you can certainly invite capital to invest.”
Soludo urged state governments to deepen collaboration in order to maximise the benefits of Nigeria’s improving economic environment, describing Delta and Anambra as emerging “twin economies” following the completion of the Second Niger Bridge.
“Delta alone can make progress, but together we can achieve much more.
“I particularly want to emphasise the relationship between Delta and Anambra.
“With the completion of the Second Niger Bridge, our relationship is much like that between New York and New Jersey—we are now effectively twin economies.
“We should move beyond our personal friendships and institutionalise collaboration between our states. There are many areas where Anambra can leverage what Delta is doing, and equally many areas where Delta can benefit from what Anambra is building.”
The governor also stressed that investment promotion should become a continuous process rather than an occasional event, noting that successful investment summits should ultimately be measured by the business deals they generate.
“I have organised two investment summits myself, but at the end of the day, it is the deals that count.
“Let’s keep it simple: investment should become a habit, not an event. It should not be something we gather to discuss once in a while. It should become a continuous process.”
He called for a coordinated national development strategy that would ensure the gains from ongoing economic reforms translate into better living standards, increased employment and reduced poverty across the country.
“There is one area I believe the President, working with the Governors through the National Economic Council under the leadership of our Vice President, will need to address after these reforms.
“We need a national, coordinated Marshall Plan that translates these macroeconomic gains into real benefits for ordinary Nigerians—more jobs, lower poverty, and improved living standards.”
Soludo also urged Nigerians to prioritise locally made products, saying increased patronage of indigenous goods would create millions of jobs and stimulate economic growth.
“Look around this room. Many of the suits we are wearing come from Europe, America, or China.
“I agree completely with the point that was made earlier: we must promote African products. Personally, I am wearing Akwete fabric today. Akwete is named after a community in Abia State, and I adopted it as my regular attire in 2019.
“Since then, I have seen how demand has increased, creating more employment and improving the incomes of the women who produce it.
“Just two or three weeks ago, the President approved a ₦2 billion intervention to help scale up Akwete production. That is exactly the kind of support we need.
“Imagine if all 247 million Nigerians consistently bought and wore Made-in-Nigeria products. We would create well over 10 million jobs.
“Perhaps at the next Delta Investment Summit, we should make it a rule: if you are not wearing Made-in-Nigeria, you don’t come. That is how we move from talking the talk to walking the talk.”
