Kaduna’s Mounting Debt Renders Salary Payments impossible, Says Governor

Kaduna State Governor, Uba Sani, has expressed concern over the significant debt inherited from his predecessor as of May 29, 2023. The governor revealed that the state is currently facing financial constraints, making it difficult to meet its salary obligations. This announcement was made during a Town Hall Meeting held at the late Umaru Musa Yar’Adua Hall in Kaduna.

Governor Sani disclosed that his administration inherited a substantial debt of $587 million, along with N85 billion and 115 contract liabilities from the previous administration. Despite these challenges, he emphasized that his government has not borrowed any additional funds in the past nine months. However, due to the increase in the exchange rate, the state is now required to repay almost triple the amount borrowed by the previous administration, which has put a strain on the state’s finances.

The governor highlighted that a significant portion of the state’s Federal Allocation, specifically N7 billion out of N10 billion received in March, was used to service debt. As a result, the state was left with only N3 billion, which is insufficient to cover the monthly wage bill of N5.2 billion.

Governor Sani assured the people of Kaduna State that despite these challenges, his administration remains committed to advancing the state’s progress and development. He outlined key priority areas, including safety and security, housing, education, healthcare, and support for Micro, Small, and Medium Enterprises (MSMEs). The government is also focusing on inclusive development by investing in human capital, stimulating the economy, and providing affordable housing.

In addressing security concerns, the governor noted that the state has made significant progress by strengthening the state Vigilance Service and procuring additional vehicles and motorcycles for distribution to security agencies. Additionally, efforts are underway to reduce the number of out-of-school children in Kaduna by 200,000 through collaboration with Kuwait.

Despite the challenges faced by the state, Governor Sani expressed optimism about the future, emphasizing the importance of collective efforts in driving Kaduna State’s progress. He reiterated the government’s commitment to rebuilding trust, fostering peace, and transforming Kaduna into a premier business hub.