Kaduna State Governor Reveals Inherited Debt Burden and Debt Servicing Challenges

During a town hall meeting in Kaduna, Governor Uba Sani disclosed that his administration inherited a substantial debt burden from the previous administration led by Nasir El-Rufai. The inherited debt includes $587 million, N85 billion, and 115 contractual liabilities.

Governor Sani noted that this debt burden is significantly impacting the state’s federal allocation, especially with the exchange rate increases, which have led to the state paying back almost three times the borrowed amount.

The governor highlighted that the state’s March federal allocation of N10 billion saw N7 billion deducted for debt servicing, leaving only N3 billion for other expenses.

This amount, according to Governor Sani, is insufficient to cover the state’s monthly salary bill of N5.2 billion.

Despite these challenges, Governor Sani emphasized that his administration has not borrowed any money in the last nine months.

He reiterated the government’s commitment to steering Kaduna State towards progress and sustainable development.

Governor Sani outlined key priority areas for his administration, including safety and security, housing, education, healthcare, and support for Micro, Small, and Medium Enterprises (MSMEs).

The government also aims to prioritize inclusive development by investing in human capital, stimulating the economy, and providing affordable housing.

Former Chief of Defence Staff, General Martin Luther Agwai (retd), highlighted the importance of peace and security for meaningful development.

He commended Governor Sani for his efforts to reduce the cost of governance in light of the state’s debt burden.

Emir of Zazzau, Ahmad Nuhu Bamali, expressed optimism about the state’s future despite its challenges.

He pledged the support of traditional rulers in ensuring the success of the administration’s efforts to turn around the state’s economy.