The Kaduna State Government has debunked reports that it borrowed N36 billion in the past six months.
The government described the reports 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.
In an official rebuttal by the Commissioner of Planning and Budget, Mukhtar Ahmed, the Kaduna government noted that exchange rate fluctuations would definitely affect the ongoing repayment of the inherited loan burden.
“These loan commitments, including World Bank programs such as AGILE, SURWASH, and ACReSAL, were all agreed upon during the previous regime,” the statement explained
While emphasizing that no new loans have been taken under Governor Uba Sani’s leadership, the statement said the surge in borrowing receipts by the second quarter of 2024 is attributable to the dramatic devaluation of the Naira.
“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 statement added that, despite the inaccurate reporting, the government remains steadfast in its commitment to debt transparency and financial discipline, focusing on improving the state’s economy without adding new financial burdens.
“It (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,” the statement stressed.