The Kaduna State government has refuted media reports claiming it borrowed ₦36 billion in the past six months, describing the allegations as false and misleading. Instead, the government clarified that it is currently repaying loans inherited from the previous administration, which have tripled in value due to the sharp devaluation of the Naira.
In an official statement, the Commissioner of Planning and Budget, Mukhtar Ahmed, explained that the state is paying back nearly three times the original loan amounts due to exchange rate fluctuations. He noted that the loans were long-term commitments, including World Bank programs such as AGILE, SURWASH, and ACReSAL, all approved by the previous administration.
Ahmed further emphasized that Governor Uba Sani’s administration has not taken any new loans since coming into office. The recent surge in borrowing receipts, as seen in the second quarter of 2024, is attributed to the dramatic devaluation of the Naira, which has dropped from ₦415-₦480 per dollar to over ₦1,600 per dollar.
“Loans taken by the previous administration, calculated at much lower exchange rates, have now tripled in value in local currency due to the Naira’s plunge,” the statement read.
The Kaduna State government criticized the media outlet for not seeking clarification before publishing the report, accusing the platform of engaging in “digital terrorism” and serving external interests by attempting to distract from ongoing investigations into financial mismanagement under the former administration.
The statement reiterated the government’s commitment to debt transparency and financial discipline, assuring citizens that the administration is focused on improving the state’s economy without incurring new financial burdens. The government also vowed to hold accountable those responsible for mismanaging Kaduna’s resources and pledged to reposition the state for the benefit of its people.
