The Kaduna State Government, through the Ministry of Finance, has refuted claims of procuring a fresh loan totaling $17.69 million.
The state Commissioner for Finance, Shizzer Bada, clarified the government’s stance in a press statement issued on Thursday.
According to Bada, there was no borrowing activity amounting to $17.69 million undertaken by the present administration.
She said that the reported claims were entirely false and fabricated.
She stated that borrowing by government entities is strictly governed by legal provisions outlined in relevant statutes, including the Constitution of the Federal Republic of Nigeria.
Under the leadership of Governor Uba Sani, the Kaduna State Government claimed that it has neither entered into any agreement nor received any foreign loan, as alleged in the reports.
Bada pointed out that the Debt Management Office (Establishment, Etc.) Act, 2003, mandates that no external loan can be approved or obtained without prior presentation of its terms and conditions to the National Assembly for approval.
“The legal provisions outlined in relevant statutes are clear regarding external borrowing by government entities.
“The Debt Management Office (Establishment, Etc.) Act, 2003, explicitly mandates that no external loan can be approved or obtained without prior presentation of its terms and conditions to the National Assembly for approval,” she added.
The government urged the public to disregard the misinformation and refrain from succumbing to false reports.
Governor Uba Sani had said that he inherited a huge debt from his predecessor, Nasir El-Rufai, during a town hall meeting on May 29, 2023.
He disclosed that the administration inherited a total debt of $587 million, N85 billion, and 115 contract liabilities from the former governor.
Furthermore, Governor Uba revealed that a large portion of the state’s Federal Allocation for March, amounting to N7 billion out of N10 billion, was used to service debt obligations.
He expressed concern that the remaining N3 billion was insufficient to cover the state’s monthly wage bill, which stands at N5.2 billion.
