The Kaduna State Government has refuted reports circulating on social media platforms and news blogs alleging that the new administration in the state has taken new loans worth $17.9million. A statement by the State Commissioner of Finance, Shizzer Bada dismissed the reports as unfounded, “totally false and fabricated”.
The statement called on the public to disregard the reports as blatant falsehood and a creation of some mischievous persons to undermine the credibility of the Governor Uba Sani-led administration.
“We did not borrow the said amount or any other reported. The claims are entirely fabricated,” the commissioner explained through the statement.
“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,” the commissioner said.
She stated further: “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.”
The commissioner further stressed that the Fiscal Responsibility Act, 2007, unequivocally stipulates that in the case of foreign currency borrowing a Federal Government guarantee is mandatory without which no sub-national or federal agency can independently engage in external borrowing.
In light of these legal provisions, she said it is evident that the allegations of borrowing $17.69 million by the Kaduna State Government are baseless and misleading.
She pointed out that Governor Sani’s administration has not initiated any new borrowing endeavours, and that 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 added.
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