The Kaduna State Government has clarified that since the inception of the current administration under Governor Uba Sani, it has not taken any new loans.
It therefore dismissed a report by Saharan reporters alleging that the state had borrowed N36 billion in the past six months, describing the report as false and misleading.
In an official rebuttal statement issued by the state commissioner for planning and budget, Muktar Ahmed, which was made available to newsmen in Kaduna on Saturday, it became necessary for the government to make clarification on the loan status of the state.
The 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, noting that the 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 consisted 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.
“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 in the manner of “digital terrorism” 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 government remains steadfast in its commitment to debt transparency and financial discipline, focussing on improving the state’s economy without adding new financial burdens.
“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,” Muktar Ahmed stressed.
ALSO READ THESE TOP STORIES FROM NIGERIAN TRIBUNE
