Kaduna govt denies taking N36b new loan

The state government clarified that it is actually paying nearly three times the size of loans taken by the past administration due to the massive devaluation of the naira

The Kaduna State Government has dismissed a report by Sahara Reporters alleging that the state borrowed N36 billion in the past six months, describing it as false and misleading.

The state government clarified that it is actually paying nearly three times the size of loans taken by the past administration due to the massive devaluation of the naira.

This was revealed in an official rebuttal issued on Saturday by the Commissioner of Planning and Budget, Mukhtar Ahmed who noted that exchange rate fluctuations would definitely affect the ongoing repayment of the inherited loan burden.

The government stated that the inherited debt burden from the previous administration, consists of long-term loans.

“These loan commitments, including World Bank programmes such as AGILE, SURWASH, and ACReSAL, were all agreed upon during the previous regime” the commissioner further explained.

While emphasising that no new loans have been taken under Governor Uba Sani’s leadership, he said the surge in borrowing receipts, by the second quarter of 2024, is attributable to the dramatic devaluation of the naira.

Mr Ahmed said the 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 Kaduna State Government, according to the commissioner, also expressed disappointment with Sahara Reporters for failing to seek clarification before publishing the report. It accused the platform of spreading falsehoods and ‘serving external interests’ by attempting to distract from ongoing investigations into financial mismanagement under the former administration.

He said that despite the inaccurate reporting, the state government remains steadfast in its commitment to debt transparency and financial discipline, focusing on improving the state’s economy without adding new financial burdens.

“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,” Mr Ahmed explained.