The Kaduna State Government has dismissed a report by an online newspaper alleging that the state borrowed N36 billion in the past six months.
In a statement issued by the state commissioner of Budget and Planning, Mukhtar Ahmed, on Saturday, the government described the report as false, misleading, and an act of online terrorism.
Mr Ahmed accused the platform of spreading falsehoods to serve external interests by attempting to distract the government from ongoing investigations into financial mismanagement under the former administration.
While emphasising that no new loans have been taken under the current administration, the commissioner said the surge in borrowing receipts, by the second quarter of 2024, is attributable to the dramatic devaluation of the naira.
Mr Ahmed also clarified that it is actually paying nearly three times the size of loans taken by the past administration due to the massive devaluation of the naira.
He noted that the exchange rate has significantly affected the ongoing repayment of the inherited loan burden.
According to him, the loans obtained from the previous administration consist of long-term loans.
“These loan commitments, including World Bank programs such as AGILE, SURWASH, and ACReSAL, were all agreed upon during the previous regime,” he said.
“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,” the statement said.
The commissioner also expressed disappointment with Sahara Reporters for failing to seek clarification before publishing the report.
He said that despite the inaccurate reporting, the government remains steadfast in its commitment to debt transparency and financial discipline, focussing on improving the state’s economy without adding new 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,” Mr Ahmed added.
