The Zamfara State Government has revealed that the sum of N14.26 billion was not borrowed, but rather part of the revenues from a N20 billion loan issued by the previous administration.
The Debt Management Office (DMO) stated in its most recent sub-national debt – domestic and external – report: “Plateau received N16.32 billion; Rivers borrowed N7.07 billion; Zamfara received N14.26 billion; and the FCT, led by Nyesom Wike, borrowed N6.75 billion from domestic creditors.”
However, on Monday, Zamfara Governor’s spokesperson, Sulaiman Bala Idris, claimed that neither domestic or external loans have been obtained since Governor Dauda Lawal entered office.
“We would like to clarify the Debt Management Office (DMO) report that the Zamfara State Government borrowed N14.26 billion,” he said in a statement.
“Zamfara State Government has never applied for loans or approached the State Assembly or National Assembly for such a request.
“It is important to note that the previous Zamfara State Government floated a N20 billion bond but failed to collect the total amount.
“The immediate past government received N4 billion out of the 20 billion loans requested for the Zamfara cargo airport project, though the funds were not utilized.
“Upon assuming office, we discovered that the payment terms made terminating the bond impossible without incurring a significant loss for the state.
“The balance of N16 billion out of the N20 billion borrowed by the past administration is the N14.26 billion captured by the Debt Management Office (DMO). The value is reduced due to inflation.
“The bond balance, which is still in a government account, has not been used and will be reserved for the airport project.”