The Kaduna State Government has denied rumours circulating on social media and news blogs claiming that Governor Uba Sani’s administration has acquired fresh loans totaling $17.9 million.
In a statement issued by the State Commissioner for Finance, Shizzer Bada, clarified that the reports were baseless, entirely untrue, and fabricated.
PERISCOPE NIGERIA recalls that recently Sani had alleged during a town hall meeting that loans deductions from former Governor Nasir El-Rufai’s administration has hindered ability of his government to pay workers.
“We did not borrow the said amount or any other loan as reported. The claims are entirely fabricated.
“There is a clarity for borrowing, and it is crucial to understand that; borrowing activities by sub-national entities in Nigeria are strictly governed by a framework comprising the Constitution of the Federal Republic of Nigeria, the Debt Management Office [Establishment, Etc.] Act, 2003, the Fiscal Responsibility Act, 2007, the Investments and Securities Act, 2007, and the Fiscal Sustainability Plan: Fiscal Framework for Sub-National Governments in Nigeria,” Bada said.
Bada partly added, “The Kaduna State Government, under the leadership of Governor Uba Sani, has not entered into any agreement or received any foreign loan amounting to $17.69 million, as claimed”.
“The legal provisions outlined in relevant statutes are clear regarding external borrowing by government entities.
“The Debt Management Office [Establishment, Etc.] Act, 2003, explicitly mandates that no external loan can be approved or obtained without prior presentation of its terms and conditions to the National Assembly for approval.
“Additionally, any external loan must be accompanied by a guarantee issued by the minister.”
“In light of these legal provisions, it is evident that the allegations of borrowing $17.69 million by the Kaduna State Government are baseless and misleading.
“Governor Uba Sani’s administration has not initiated any new borrowing endeavours, and as of the present date, no such funds have been borrowed.
“In conclusion, the public is urged to disregard the erroneous report and refrain from succumbing to misinformation,” she said.
