Kaduna Government Denies Allegations of Borrowing N36 Billion in Six Months
The Kaduna State Government has firmly rejected claims that it borrowed N36 billion over the past six months, labeling the report as “false and misleading.” The government’s response comes amidst growing concern over the state’s financial management.
In an official statement released by Mukhtar Ahmed, the Commissioner of Planning and Budget, the government clarified that it is currently paying nearly three times the size of loans inherited from the previous administration. This substantial increase is primarily due to the dramatic devaluation of the Naira.
“The fluctuations in exchange rates are impacting our ability to repay the inherited loan burden,” Ahmed stated. He pointed out that the debt load from the previous administration includes long-term loans linked to various World Bank programs such as AGILE, SURWASH, and ACReSAL, all of which were agreed upon before Kaduna State Governor Uba Sani’s tenure.
Importantly, the Commissioner emphasized that no new loans have been acquired under the current leadership. Instead, the spike in borrowing receipts noted in the second quarter of 2024 is largely attributed to the Naira’s sharp decline. “Loan agreements from the past, based on exchange rates of ₦415-₦480 to the dollar, have now been dramatically affected by the Naira’s fall to over ₦1,600 to the dollar, effectively tripling the value of these debts in local currency,” he explained.
The government also expressed disappointment with the online outlet that published the erroneous report, accusing it of “digital terrorism” and attempting to distract from ongoing investigations into financial mismanagement under the former administration. “It is troubling that the platform did not seek clarification before publishing such claims,” Ahmed remarked.
Despite the inaccuracies, the Kaduna State Government remains committed to transparency and financial discipline, focusing on revitalizing the state’s economy without incurring additional debt. “We reaffirm our dedication to holding accountable those responsible for mismanaging the state’s resources and repositioning Kaduna for the benefit of its citizens,” the Commissioner concluded.
