Kaduna Govt Dismisses Claims of Borrowing ₦36 Billion in Six Months

The Kaduna State Government has strongly refuted a report alleging that the state borrowed ₦36 billion in the last six months, labeling the claim as false and misleading.

In an official statement, Mukhtar Ahmed, the Commissioner of Planning and Budget, clarified that the state’s current financial obligations stem from loans taken by the previous administration, which are now more costly due to the severe devaluation of the Naira.

He explained that while no new loans have been secured under Governor Uba Sani’s leadership, the repayment amounts have surged due to the falling value of the local currency.

Ahmed highlighted that the inherited debt portfolio consists of long-term loans, including those tied to World Bank programs like AGILE, SURWASH, and ACReSAL, all of which were negotiated by the previous administration.

“These loan commitments, made when the exchange rate was between ₦415 and ₦480 to the dollar, are now being repaid at an exchange rate of over ₦1,600 to the dollar, effectively tripling the state’s financial obligations,” the Commissioner explained.

The government expressed disappointment with the online platform that published the report, accusing it of spreading misinformation and failing to verify its claims.

The Commissioner referred to the platform’s actions as a form of “digital terrorism,” alleging that it was working to distract from ongoing investigations into financial mismanagement during the previous administration.

Despite the inaccurate report, the Kaduna State Government emphasized its commitment to maintaining financial transparency and discipline.

The administration assured the public that it would continue to manage the state’s economy responsibly, without taking on new debts, and reiterated its determination to hold accountable those responsible for the mismanagement of state resources in the past.

“The government remains focused on repositioning Kaduna State for the benefit of its citizens and will not be deterred by false reports,” Ahmed concluded.