Kaduna refutes claim of new multi-million dollar foreign loan
The Kaduna State Government has refuted unfounded allegations circulating on social media platforms and news blogs that new loans worth $17.9Million have been received by the administration, stating that the claims were “totally false and fabricated”. In a press statement by Shizzer Nasara Bada the Kaduna State Commissioner of Finance, called on the public to […]
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The Kaduna State Government has refuted unfounded allegations circulating on social media platforms and news blogs that new loans worth $17.9Million have been received by the administration, stating that the claims were “totally false and fabricated”.
In a press statement by Shizzer Nasara Bada the Kaduna State Commissioner of Finance, called on the public to disregard the blatant falsehood as a creation of some mischievous people 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.
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.
“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 Kaduna State Commissioner of Finance further revealed 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, 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 added.