Anambra State Governor, Professor Chukwuma Soludo, has explained that his administration withdrew from the World Bank-backed NG-CARES loan programme due to concerns over exchange rate instability, which he said would have made the facility financially burdensome despite its low interest rate.
Speaking at the Delta State Economic and Investment Summit 2026, Governor Soludo said Anambra was the only state to opt out of the programme after his administration assessed the economic implications of the prevailing foreign exchange regime.
According to the governor, exchange rate distortions at the time meant that even a zero-interest loan could become extremely expensive following the depreciation of the naira.
He explained that converting the loan at an exchange rate of about ₦460 to one US dollar, with the expectation of a future realignment beyond ₦1,000 per dollar, would have significantly increased the repayment burden.
Governor Soludo reiterated that his administration has maintained a zero-borrowing policy since assuming office, stressing that Anambra State has not obtained loans from commercial banks, the Federal Government or international financial institutions under his leadership.
The former Governor of the Central Bank of Nigeria (CBN) noted that exchange rate stability remains a critical factor in attracting foreign investment and sustaining economic growth.
He added that Nigeria’s macroeconomic environment has improved in recent years, citing increased foreign exchange reserves and greater stability in the foreign exchange market as positive indicators for investors.
Governor Soludo maintained that prudent fiscal management and responsible borrowing remain central to his administration’s economic agenda, insisting that Anambra has continued to execute key infrastructure and human capital development projects without relying on external loans.
