The Kaduna State Government has rejected claims of borrowing ₦36 billion in six months, calling them false.
The state is facing increased repayments on previous loans due to the Naira’s devaluation but has taken no new loans under Governor Uba Sani.
However, the government says it remains committed to transparency and accountability.
Officials have described these reports as false and misleading, seeking to clarify the state’s financial situation.
The government explained that it is currently managing a significant repayment burden from loans taken by the previous administration.
This burden has nearly tripled due to the massive devaluation of the Naira.
Mukhtar Ahmed, the Commissioner of Planning and Budget, addressed these concerns in an official statement.
He highlighted that fluctuations in the exchange rate impact ongoing loan repayments.
The state’s current financial commitments include various World Bank programs, such as AGILE, SURWASH, and ACReSAL, all agreed upon during the previous regime.
The government emphasized that Governor Uba Sani’s leadership has not acquired any new loans.
Instead, the dramatic decline in the Naira’s value directly links to the surge in borrowing receipts by the second quarter of 2024.
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Ahmed explained that loans from the past were based on exchange rates between ₦415 and ₦480 to the dollar.
However, with the Naira now plummeting to over ₦1,600 to the dollar, the debts in local currency have effectively tripled.
This significant devaluation poses a real challenge for the state.
Despite the misleading reports, the Kaduna State Government remains committed to transparency and financial discipline.
Officials focus on improving the state’s economy without incurring new financial burdens.
The government also pledged to hold accountable those responsible for the mismanagement of resources in the past.
It reaffirmed its dedication to repositioning Kaduna for the benefit of its citizens.