Kaduna State Government Denies Allegations of $17.9 Million Foreign Loan

The Kaduna State Government has adamantly refuted recent claims circulating across social media platforms and various news blogs regarding the acquisition of a new foreign loan amounting to $17.9 million. In a statement released by the State Commissioner of Finance, Shizzer Bada, the government vehemently denied the authenticity of these reports, labelling them as baseless and entirely fabricated. The statement emphasized the adherence of the Kaduna State Government to established legal frameworks governing borrowing activities by sub-national entities in Nigeria.

Commissioner Bada underscored the strict regulations outlined in key legislative documents, including the Constitution of the Federal Republic of Nigeria, the Debt Management Office Act of 2003, the Fiscal Responsibility Act of 2007, the Investments and Securities Act of 2007, and the Fiscal Sustainability Plan for Sub-National Governments. These statutes, she affirmed, clearly outline the procedures and prerequisites for obtaining external loans, including the mandatory approval process by the National Assembly and the issuance of guarantees by the minister.

Moreover, Commissioner Bada emphasized that Governor Uba Sani’s administration has not entered into any agreements nor received any foreign loans amounting to $17.9 million, as alleged. She reiterated the government’s commitment to fiscal responsibility and transparency, urging the public to dismiss the misleading reports and avoid succumbing to misinformation.

Legal Framework Governing Borrowing Activities

The statement issued by the Kaduna State Government sheds light on the intricate legal framework governing borrowing activities by government entities in Nigeria. The Commissioner of Finance emphasized the stringent regulations outlined in various legislative documents, underscoring the importance of compliance with these statutes to ensure transparency and accountability in financial transactions. By invoking specific acts such as the Debt Management Office Act of 2003 and the Fiscal Responsibility Act of 2007, the government seeks to reassure the public of its commitment to upholding established protocols in fiscal management.

Commissioner Bada’s detailed explanation serves to educate the populace on the legal procedures involved in securing external loans, highlighting the requisite approval processes and safeguards mandated by law. Through this clarification, the Kaduna State Government aims to dispel any misconceptions surrounding the alleged loan acquisition, reaffirming its adherence to due diligence and regulatory compliance. The emphasis on legal provisions underscores the government’s proactive approach to addressing concerns and fostering trust among citizens.

Call to Disregard Misinformation

In concluding the statement, Commissioner Bada reiterated the government’s call for the public to disregard the erroneous reports and refrain from spreading misinformation. The emphasis on verifying information and relying on credible sources reflects the administration’s commitment to combating the spread of false narratives and maintaining public trust. By urging vigilance and critical thinking, the Kaduna State Government seeks to empower citizens to discern fact from fiction in an era rife with misinformation.

Furthermore, the government’s swift response to refute the allegations demonstrates its proactive approach to addressing public concerns and safeguarding its reputation. Through transparent communication and adherence to legal frameworks, Governor Uba Sani’s administration aims to uphold accountability and integrity in governance, fostering a climate of trust and confidence among the populace.

Inherited Debt Challenges Highlighted by Governor Uba Sani of kaduna State

Governor Uba Sani recently shed light on the significant debt burden inherited from his predecessor, Nasir El-Rufai, during a town hall meeting held on May 29, 2023. Expressing concern over the state’s financial obligations, Governor Sani disclosed that his administration inherited a staggering sum of $587 million, alongside N85 billion in debt and 115 contract liabilities from the previous administration. This revelation underscores the magnitude of the fiscal challenges faced by the current administration upon assuming office.

Governor Sani further revealed that a substantial portion of the state’s federal allocation was allocated to servicing debts, indicative of the financial strain imposed by existing liabilities. Notably, he disclosed that out of the N10 billion Federal Allocation received in March, a significant portion amounting to N7 billion was allocated towards debt servicing. The revelation underscores the pressing need for prudent fiscal management and strategic debt restructuring initiatives to alleviate the state’s financial burden and promote sustainable economic growth.