The Kaduna State Government has denied receiving additional loans for $17.9 million, claiming that the reports were “totally false and fabricated” on social media platforms and news websites.
Shizzer Nasara Bada, the Kaduna State Commissioner of Finance, issued a press statement urging the public to dismiss the “blatant falsehood” as the fabrication of certain malicious people seeking to damage the legitimacy of Governor Uba Sani’s government.
“We did not borrow the aforementioned sum or any others reported. The claims are completely bogus. Borrowing activities by sub-national entities in Nigeria are strictly governed by a framework that includes the Constitution of the Federal Republic of Nigeria, the Debt Management Office (Establishment, Etc.) Act, 2003, the Fiscal Responsibility Act, 2007, the Investments and Securities Act, 2007, and the Fiscal Sustainability Plan: Fiscal Framework for Sub-National Governments in Nigeria. The commissioner remarked.
“The Kaduna State Government, under the leadership of Governor Uba Sani, has not entered into any agreement or received any foreign loan amounting to $17.69 million, as claimed. The legal provisions outlined in relevant statutes are clear regarding external borrowing by government entities.
“The Debt Management Office (Establishment, Etc.) Act, 2003, explicitly mandates that no external loan can be approved or obtained without prior presentation of its terms and conditions to the National Assembly for approval. Additionally, any external loan must be accompanied by a guarantee issued by the Minister.”
The Kaduna State Commissioner of Finance further revealed that the Fiscal Responsibility Act, 2007, unequivocally stipulates that in the case of foreign currency borrowing, a Federal Government guarantee is mandatory without which no sub-national or federal agency can independently engage in external borrowing.
“In light of these legal provisions, it is evident that the allegations of borrowing $17.69 million by the Kaduna State Government are baseless and misleading.
Governor Uba Sani’s administration has not initiated any new borrowing endeavours, and as of the present date, no such funds have been borrowed. In conclusion, the public is urged to disregard the erroneous report and refrain from succumbing to misinformation.” She added.