Soludo: Nigeria’s Economy Has Stabilised, Says He Hasn’t Borrowed Since Becoming Anambra Governor

Anambra State Governor, Prof. Charles Soludo, has declared that Nigeria’s macroeconomic environment has stabilised and is steadily improving, describing the current economic outlook as more conducive for investment and foreign capital inflows.

Speaking on Monday at the Delta State Economic and Investment Summit, Soludo said the country’s recent macroeconomic gains should be celebrated, noting that they have created a more predictable environment for both governments and investors.

The former Governor of the Central Bank of Nigeria (CBN) also revealed that he has not borrowed any money since assuming office as Governor of Anambra State.

“I haven’t borrowed a dime since I became Governor,” Soludo said, while responding to comments made by Delta State Governor, Sheriff Oborevwori.

However, he cautioned against making an absolute commitment never to borrow, arguing that access to capital remains essential for development, especially in a capital-scarce economy like Nigeria.

Soludo explained that shortly after taking office, his administration withdrew Anambra State from the World Bank-funded NG-CARES programme because prevailing foreign exchange distortions made even zero-interest loans financially unattractive.

According to him, borrowing foreign-denominated funds when the naira exchanged at about ₦460 to the dollar, with an inevitable exchange rate adjustment on the horizon, would have imposed an effective borrowing cost of over 100 percent.

“When I became Governor, I pulled Anambra State out of an ongoing World Bank loan, NG-CARES, and Anambra was the only state that pulled out,” he said.

“Even at zero interest, it was still the most expensive fund in the world because of what I knew was going to be the inevitable exchange rate realignment.”

Soludo noted that the economic landscape has since changed significantly, citing improvements in Nigeria’s foreign exchange position and greater stability in the exchange rate.

He said Nigeria now has net foreign exchange reserves exceeding $40 billion and gross reserves of about $52 billion, compared to much lower levels in 2023.

According to him, the improved macroeconomic environment has reversed the previous trend of capital flight and positioned Nigeria to attract much-needed foreign investment.

“We are a capital-scarce economy, but before 2023 we also had a massive capital flight. Today, that has been reversed,” he said.

“The exchange rate has become more stable and predictable to a large extent. Therefore, the Nigerian economy and the subnational governments will require foreign capital, and the macroeconomic environment is more conducive today.”

While acknowledging that oil-rich states such as Delta may have greater financial flexibility, Soludo maintained that many other states would still need to explore responsible borrowing to finance development and unlock investment opportunities.