The Kaduna State Government has refuted claims that it borrowed N36 billion in the past six months, describing the reports as false and misleading.
In a statement released by the Commissioner of Planning and Budget, Mukhtar Ahmed, the government clarified that it has not taken any new loans under the administration of Governor Uba Sani.
Instead, the state is grappling with the repayment of loans inherited from the previous administration, which has been compounded by the massive devaluation of the Naira.
The statement explained that the loan commitments, including World Bank programs such as AGILE, SURWASH, and ACReSAL, were agreed upon by the previous government. The sharp devaluation of the naira has significantly increased the local currency value of the debts.
“These loan commitments, including World Bank programs such as AGILE, SURWASH, and ACReSAL, were all agreed upon during the previous regime,” the statement said.
The government emphasized that the dramatic plunge in the exchange rate, with the naira falling from ₦415-₦480 per dollar to over ₦1,600 per dollar, has effectively tripled the size of the loan repayments. This increase, the government noted, is responsible for the surge in borrowing receipts by the second quarter of 2024.
Despite the inaccurate reports, the Kaduna State Government reaffirmed its commitment to debt transparency and financial discipline. The administration also reiterated its focus on improving the state’s economy without adding new financial burdens.
The government also stressed its commitment to hold accountable those responsible for the mismanagement of the state’s resources and vowed to reposition Kaduna State for the benefit of its citizens.
