Kaduna govt denies obtaining fresh $17.9m foreign loan

The Kaduna State Government has denied reports circulating on social media platforms and news blogs alleging that the administration of Governor Uba Sani has taken new loans worth $17.9 million.

A statement by the State Commissioner of Finance, Shizzer Bada, said the reports were unfounded, totally false, and fabricated.

“We did not borrow the said amount or any other loan as reported. The claims are entirely fabricated.

ad

“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, therefore, stressed that, “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.

whatsApp

“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.

JaizBank

“Additionally, any external loan must be accompanied by a guarantee issued by the minister.”

Mrs Bada 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.

The statement also called on the public to disregard, “the blatant falsehood as a creation of some mischievous people to undermine the credibility of the current administration”.

Credit Gist New Today News in Newspaper Nigeria Headlines

Leave a Reply

Your email address will not be published. Required fields are marked *