The government said it is paying nearly three times the size of loans taken by the past administration due to the massive devaluation of the Naira.
By Capital Watch Media
The Kaduna State government has described as false and misleading a media report alleging that the state has borrowed the sum of N36 billion on the past six months.
Instead, the government said it is paying nearly three times the size of loans taken by the past administration due to the massive devaluation of the Naira.
In an official statement by the Commissioner of Planning and budget, Mukhtar Ahmed, the state government explained that the exchange rate fluctuations would affect the ongoing repayment of the inherited loan.
The statement noted that the inherited debt burden from the previous administration consisted of long-term loans, including the World Bank programs such as AGILE, SURWASH and ACReSAL which were all agreed upon during the previous administration.
While clarifying that the administration of Governor Uba Sani has not taken any loan since it came into office, the budget Commissioner explained that 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 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 added that the Kaduna State government led by Governor Uba Sani remained steadfast in its commitment to debt transparency and financial discipline, focusing on improving the state’s economy without adding new financial burdens.
It also resolved to hold accountable those responsible for mismanaging the state’s resources, vowing to reposition Kaduna for the benefit of its citizens.
