By Israel Bulus, Kaduna
The Kaduna State Government, through the Ministry of Finance, has denied borrowing of fresh N17.69 million loan purported in a media report.
The Finance Commissioner, Shizzer Nasara Bada debunked this in a statement signed on Thursday and issued to newsmen in Kaduna.
She explained that no borrowing of &17.69 million was undertaken.
“We did not borrow the said amount or any other amount as reported. The claims are entirely false and fabricated” she said.
” There must be 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, adding 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.
According to her 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.
” Similarly, the Fiscal Responsibility Act, of 2007, unequivocally stipulates that in the case of foreign currency borrowing, a Federal Government guarantee is mandatory, and no state, local government, or federal agency can independently engage in external borrowing.
They noted that the requirements have not been met by the government and therefore cannot be said to have borrowed any funds.
” 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’s administration has not initiated any new borrowing endeavors, and as of the present date, no such funds have been borrowed.
The government urged the public to disregard the erroneous report and refrain from succumbing to misinformation, noting that this clarification aims to ensure transparency and dispel the confusion surrounding debt-related matters in Kaduna State.
