LAGOS, Nigeria (VOICE OF NAIJA)-A finance expert, Sheriffdeen Tella says the Kaduna State government, led by Governor Uba Sani, needs to accurately communicate the current debt situation of the state to the public.
Tella who spoke with Voiceofnaija.com said: “The governor should say what he met on ground, so that people can know what he is battling with.
“The only thing is that he should have gone further to say whether the debt is justified with the assets inherited.”
Kaduna State Debt Burden
Data from the Debt Management Office (DMO) reveals that Kaduna State accumulated $343 million and N37.43 billion in domestic debt, while also witnessing a surge in external debt from $226.368 million in 2015 to $569.376 million by May 2023.
Inheriting a substantial debt burden of $587 million, N85 billion, and 115 contractual liabilities, Governor Uba Sani faced immediate challenges in managing the state’s finances.
The weight of this inheritance has been particularly felt in meeting salary obligations, posing constraints on the current administration’s fiscal manoeuvrability.
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The debt burden has raised concerns and criticisms from various individuals, including Bashir El-Rufai and former senator Shehu Sani.
Tella’s insight highlights the need for transparency and accountability in managing the state’s finances.
The borrowing patterns, inherited debts, and reactions from various stakeholders paint a shady picture of the state’s fiscal health and governance.
Former Governor Nasir El-Rufai’s eight-year tenure saw significant borrowing, both domestically and externally.
Governor Uba Sani’s administration has adamantly stated its refusal to engage in additional borrowing, despite the daunting debt profile inherited from the previous administration.
However, the debt situation in Kaduna State has sparked criticism from various quarters.
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Figures such as Bashir El-Rufai, son of the former governor, and former Kaduna senator, Shehu Sani, have raised concerns regarding Governor Sani’s competency and accountability in handling the state’s finances.
Meanwhile, the All Progressives Congress (APC) in Kaduna State has declared total support for Governor Uba Sani, saying that the disclosure on the debt profile of the state was commendable and showed the governor’s commitment to transparent and inclusive governance.
A statement issued by Kaduna State APC publicity secretary, Salisu Tanko Wusono, on Tuesday in Kaduna, said the party commended Governor Sani’s open and inclusive leadership style, evident in the diverse representation at the State of Kaduna Town Hall held last Saturday.
APC further applauded Governor Sani’s recent initiatives aimed at alleviating economic hardship and fostering progress in Kaduna State.
These include grants to 7,500 SMEs, support for 5,000 farmers, cash transfers, and food distribution to vulnerable households.