The Kaduna State Government has refuted claims suggesting that the state incurred a debt of ₦36 billion over the last six months, labelling the report as inaccurate and deceptive.
The government stated that it is currently repaying nearly three times the amount of loans acquired by the previous administration, a situation attributed to the significant devaluation of the Naira.
In an official statement released by the Commissioner of Planning and Budget, Mukhtar Ahmed, the state government pointed out that variations in exchange rates would impact the ongoing repayment of the existing loan obligations.
According to the government, the inherited debt burden from the previous administration consisted of long-term loans.
“These loan commitments, including World Bank programs such as AGILE, SURWASH, and ACReSAL, were all agreed upon during the previous administration,” the statement noted, stressing that no new loans have been taken under Governor Sani’s administration.
Ahmed further 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 ₦415-₦480 to the dollar, have now seen the Naira plunge to over ₦1,600 to the dollar, effectively tripling the value of these debts in local currency,” he noted.
The Kaduna State Government, as articulated by the Commissioner, conveyed its dissatisfaction with the online platform for not seeking clarification prior to the publication of the report.
The government accused the medium of disseminating misinformation, characterizing it as a form of “digital terrorism” that serves external agendas by diverting attention from the ongoing inquiries into financial mismanagement associated with the previous administration.
He emphasized that, notwithstanding the erroneous reporting, the government is resolute in its dedication to transparency in debt management and financial discipline, prioritizing the enhancement of the state’s economy without imposing additional financial burdens.
“The state government reaffirmed its resolve to hold accountable those responsible for mismanaging the state’s resources, vowing to reposition Kaduna for the benefit of its citizens,” the Commissioner added.
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