The Kaduna State Government has debunked reports that it borrowed N36 billion in the past six months.
Reports had claimed that the state borrowed the sum of N36 billion in six months, exceeding the combined total of N29.6 billion borrowed in 2022 and 2023.
However, in a statement on Saturday by Mukhtar Ahmed, Kaduna’s commissioner of planning and budget, the state government described the report as false and misleading.
Ahmed said the state is rather paying nearly three times the size of loans taken by the past administration due to the devaluation of the naira.
He said exchange rate fluctuations would affect the ongoing repayment of the inherited loan burden.
The commissioner said the debt burden inherited from the previous administration comprises long-term loans.
“These loan commitments, including World Bank programs such as AGILE, SURWASH, and ACReSAL, were all agreed upon during the previous regime,” he said.
The commissioner said no new loans have been taken under the leadership of Uba Sani, Kaduna state governor.
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He added that the surge in borrowing receipts, by the second quarter (Q2) of 2024, is also attributable to the naira devaluation.
Ahmed said the previous administration’s loan agreements, based on exchange rates of N415-N480 to the dollar, have effectively tripled in local currency, as the naira has dropped to over N1,600/$.
“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 statement noted.
The commissioner further noted that the state remains steadfast in its commitment to debt transparency and financial discipline, with a focus on improving the state’s economy without new financial burdens.
Ahmed added that the government was resolute in holding accountable those responsible for mismanaging the state’s resources and repositioning Kaduna for the benefit of its citizens.
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