The Kaduna State government has dismissed as false and misleading a media report claiming that the state borrowed ₦36 billion over the past six months.
Instead, the government clarified that it is currently paying nearly three times the amount borrowed by the previous administration due to the significant devaluation of the Naira.
In an official statement by the Commissioner of Planning and Budget, Mukhtar Ahmed, the government explained that fluctuations in the exchange rate are impacting the repayment of inherited loans.
The statement further outlined that the debt inherited from the previous administration includes long-term loans, such as those tied to World Bank programs like AGILE, SURWASH, and ACReSAL, which were all negotiated by the previous government.
The Commissioner also emphasized that Governor Uba Sani’s administration has not taken any new loans since coming into office, and the increase in loan repayments by the second quarter of 2024 is a direct result of the Naira’s sharp devaluation.
“Previous administration’s loan agreements, based on exchange rates of N415- N480 to the dollar, have now seen the Naira plunge to over N1, 600 to the dollar, effectively tripling the value of these debts in local currency”, the statement said.
The Kaduna State government, however, expressed disappointment with the online medium for failing to seek clarification before publishing the report, and therefore, accused the platform of spreading falsehoods in the manner of “Digital Terrorism”, and serving external interests by attempting to distract ongoing investigations into financial mismanagement under the former administration.
The statement further highlighted that Governor Uba Sani’s administration remains committed to maintaining transparency and financial discipline in managing the state’s debt. The government is focused on improving Kaduna’s economy without incurring additional financial burdens.
Additionally, the administration pledged to hold accountable those responsible for the mismanagement of the state’s resources, vowing to reposition Kaduna for the benefit of its citizens.