Anambra Releases N363.4m Workers’ Arrears Document Amid Dispute With Peter Obi

The Anambra State Government has released a document approving the payment of N363.381 million to workers, pensioners and next of kin connected to two defunct state agencies, escalating an ongoing dispute with former Governor Peter Obi over the financial obligations inherited by successive administrations. The document, dated May 24, 2025, relates to the second tranche of payments under an out-of-court settlement reached between the Anambra State Government and the Amalgamated Union of Public Corporations, Civil Service, Technical and Recreational Services Employees, AUPCTRE. It covers outstanding claims involving former workers of the defunct Anambra State Water Corporation and the Anambra State Environmental Protection Agency, ANSEPA. The latest disclosure was made on Friday by the Anambra State New Media Office as the state government continued its public exchange with Obi over whether his administration left unpaid workers’ entitlements when he left office in March 2014. According to the document, the then Head of Service, Dame Theodora Okwy Igwegbe, sought approval from Governor Chukwuma Soludo for the release of N363,381,000 as the second instalment under the terms of the settlement. The document stated that the payment was due in 2026 and was to be processed through the state government payroll system using a dedicated account. The settlement itself dates back to February 6, 2024, when the Anambra government and AUPCTRE reached an out-of-court agreement following a long-running dispute involving the affected agencies. Records published by the Anambra State Government at the time show that the dispute had lasted for years. The government said the settlement was intended to resolve outstanding issues surrounding the dissolution of the Water Corporation and related workers’ claims. How the payment was structured The newly released document represents the second stage of a payment arrangement agreed by the parties. Earlier records of the settlement indicate that verified salary claims involving the affected workers were placed at more than N1.5 billion, comprising arrears associated with the defunct Water Corporation and ANSEPA. The settlement provided for an initial payment of N473 million, followed by further instalments. The remaining amount was structured across subsequent years, with approximately N363 million scheduled for each of the 2025, 2026 and 2027 instalments. The Anambra government had announced the settlement in 2024 as the resolution of a 14-year dispute involving AUPCTRE and the affected agencies. At the time, state officials said the agreement would save the government money and create an opportunity for eligible former Water Corporation employees to undergo screening for possible re-employment. The latest document therefore provides evidence of the payment arrangement and the state government's approval process for the second tranche. However, the document does not by itself settle the separate question of which administration was responsible for the original accumulation of all the arrears. That distinction has become central to the disagreement between Obi and the current administration. Obi maintains he left Anambra without unpaid obligations The latest disclosure came only days after Obi again rejected allegations that he left Anambra with unpaid salaries, pensions, gratuities or other outstanding obligations. Speaking on Arise Television's Prime Time, the former governor said that when he handed over power in March 2014, the state was not owing salaries, gratuities or pensions that were due for payment. He also said his administration did not leave unpaid obligations to contractors or suppliers whose work had been executed, certified and verified. Obi further rejected the suggestion that he borrowed money or issued bonds on behalf of Anambra during his eight years as governor. He argued that some financial facilities associated with the state were concessionary multilateral support arranged through the Federal Government rather than loans personally obtained by his administration. Obi also maintained that undrawn funds should not automatically be classified as debt incurred by his administration. His position contrasts with the Soludo administration's broader claims that it inherited outstanding liabilities from previous administrations. Anambra says arrears remained after Obi's tenure The Anambra government has repeatedly cited workers' arrears as part of its argument that not all obligations had been settled when Obi left office. The state has previously said the Soludo administration has cleared about N22 billion in inherited gratuity arrears, although it maintains that some legacy liabilities remain. It has specifically identified arrears associated with workers of the defunct Water Corporation and other groups as obligations that were eventually addressed under the current administration. The government has also released other financial documents and statements as part of the wider dispute over Anambra's debt position, including claims concerning external borrowing and ecological funds. Obi has rejected those allegations and challenged anyone disputing his account of the state's finances to provide evidence. The competing claims have increasingly become part of the political debate surrounding Obi, who is now the Nigeria Democratic Congress presidential candidate for the 2027 election. What the latest document establishes The May 2025 approval document provides a specific record that the Anambra government approved a N363.381 million second tranche under a settlement involving workers and pensioners connected to the defunct Water Corporation and ANSEPA. It also confirms that the payment was part of a settlement reached in February 2024 after years of disagreement between the state and AUPCTRE. What remains disputed is the broader historical question of when the obligations arose, which portions were inherited from earlier administrations and what had already been paid before Obi left office. The state's decision to release the document is therefore unlikely to end the disagreement. Instead, it adds another official record to a growing exchange between the Soludo administration and Obi over Anambra's finances before and after the 2014 transition. For now, the document establishes the existence of the settlement and the scheduled N363.381 million payment. The competing claims over responsibility for the underlying arrears remain contested.