The Kaduna State Government has disputed a claim that it borrowed N36 billion over the last six months, characterising it as untrue and deceptive.
The government stated that it is paying roughly three times the amount of loans obtained by the previous administration as a result of the significant depreciation of the naira.
This was stated in an official reply by Mukhtar Ahmed, Commissioner of Planning and Budget, who underlined that currency rate changes would undoubtedly impair the continued repayment of the inherited loan burden.
The government indicated that the inherited debt load from the previous administration is made up of long-term debts. “These loan commitments, including World Bank programs such as AGILE, SURWASH, and ACReSAL, were all agreed upon during the previous regime” according to the Commissioner.
While emphasising that no new loans have been accepted during Governor Uba Sani’s leadership, he stated that the increase in borrowing receipts by the second quarter of 2024 is due to the Naira’s precipitous fall.
He added: “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.”
The Commissioner said that the Kaduna State Government was also upset with online reporters for not obtaining an explanation before the report’s publication. It said that the platform was engaging in “digital terrorism” by disseminating false information and advancing outside agendas by diverting attention from continuing enquiries into financial impropriety committed by the previous government.
The Commissioner went on to say that despite the false reporting, the administration is unwavering in its dedication to financial restraint and debt transparency, with an emphasis on boosting the state’s economy without piling on more debt.
“It (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”, Ahmed stated.