The Kaduna State Government has officially dismissed reports claiming that the state borrowed N36 billion in the past six months, labeling the information as false and misleading.
Clarification on Loan Repayment
In a statement issued by Mukhtar Ahmed, the Commissioner of Planning and Budget, the government clarified that it is currently repaying nearly three times the size of loans taken by the previous administration. This increase is attributed to the significant devaluation of the Naira, which has dramatically affected the ongoing repayment of the inherited loan burden.
The Commissioner explained that the inherited debt consists of long-term loans, including commitments related to World Bank programs such as AGILE, SURWASH, and ACReSAL, which were agreed upon during the prior administration.
Impact of Exchange Rate Fluctuations
Ahmed further noted that there have been no new loans taken under Governor Uba Sani’s leadership. He attributed the rise in borrowing receipts, expected by the second quarter of 2024, to the drastic devaluation of the Naira. He stated, “Previous administration’s loan agreements, based on exchange rates of ₦415-₦480 to the dollar, have now seen the Naira plunge to over ₦1,600 to the dollar, effectively tripling the value of these debts in local currency.”
Disappointment with Media Reporting
The Kaduna State Government expressed disappointment with the media outlet that published the erroneous report, accusing it of failing to seek clarification before dissemination. The government described such reporting as a form of “digital terrorism,” serving external interests and attempting to distract from ongoing investigations into financial mismanagement under the former administration.
Despite the inaccurate reporting, the government reiterated its commitment to debt transparency and financial discipline, focusing on revitalizing the state’s economy without incurring new financial burdens. The Commissioner concluded, “The state government reaffirmed its resolve to hold accountable those responsible for mismanaging the state’s resources, vowing to reposition Kaduna for the benefit of its citizens.”