Kaduna Govt Denies Claims of New Multi-Million Dollar Foreign Loan

Clarifies that no borrowing of $17.69 million was done by the current administration.
The Kaduna State Governor, Uba Sani
The Kaduna State Governor, Uba SaniX (Twitter)

The Ministry of Finance on behalf of the Kaduna State Government has denied allegations of collecting a new loan of $17.69 million.

The state's commissioner of finance, Shizzer Bada, highlighted the position of the state government in a press statement on Thursday. She clarified that no borrowing of $17.69 million was done by the current administration.

She said clarity is required when it comes to borrowing, and it is important to recognize that subnational entities in Nigeria are subject to stringent regulations regarding borrowing, which are outlined in the Federal Republic of Nigeria's Constitution.

She claims that no agreement has been signed or any foreign loan received by the administration, led by Governor Uba Sani, as alleged. When it comes to government institutions borrowing from outside sources, the relevant statutes have clear legal provisions.

She continued by saying that the Debt Management Office (Establishment, Etc.) Act, 2003 expressly states that no external loan may be received or accepted without first being presented for approval by the National Assembly with all of its terms and conditions.

The public was asked by the administration to ignore the report and not fall for false information.

At a town hall gathering recently, Governor Uba bemoaned the enormous debt that he inherited from his predecessor, Nasir El-Rufai, on May 29, 2023. He said that the outgoing governor left his administration with 115 contract liabilities, $587 million, and N85 billion.

He said that N7 billion of the state's N10 billion federal allocation for March went towards debt payment. The governor went on to say that the state only had N3 billion, which he claimed was insufficient to cover salaries because the state's monthly wage bill is N5.2 billion.

Related Stories

No stories found.
Latest Lagos Local News - Lagoslocalnews.com