Kaduna government speaks on ‘borrowing N36bn in 6 months’

Kaduna state government has dismissed a report circulating that it borrowed N36 billion in the past six months, describing the claim as false and misleading.

The state government clarified that it is currently repaying nearly three times the size of loans inherited from the previous administration, primarily due to the devaluation of the Naira.

This was contained in a statement by Mukhtar Ahmed, the Commissioner of Planning and Budget, who explained that exchange rate fluctuations have significantly impacted the ongoing repayment of inherited loans.

Ahmed noted that the debt burden inherited by Governor Uba Sani’s administration comprises long-term loans secured during the tenure of the previous government.

He highlighted programs like AGILE, SURWASH, and ACRSAL, which were initiated under the former administration, adding that no new loans have been taken since Uba Sani assumed office.

The Commissioner attributed the reported surge in borrowing receipts by the second quarter of 2024 to the severe devaluation of the Naira.

“Loans that were negotiated at exchange rates of ₦415-₦480 to the dollar are now being repaid at over ₦1,600 to the dollar,” he said, explaining that this has drastically increased the value of the debts in local currency.

The Kaduna state government also expressed disappointment with Sahara Reporters for publishing the story without seeking clarification.

It accused the platform of engaging in what it described as “digital terrorism,” and accused it of trying to divert attention from ongoing investigations into financial mismanagement under the former administration.