Kaduna State Government has described as totally false the news making the rounds, notably in the BBC News Service that the current administration under Governor Uba Sani had taken foreign loan worth $17.69 million.
Commissioner of Finance, Shizza Nasara Bada, in a statement on Wednesday, declared: ” We did not borrow the said amount or any other amount as reported . The claims are entirely false and fabricated.
“There is a clarity for borrowing and it is crucial to understand that borrowing acrivities by subnational entities in Nigeria are strictly governed by a framework comprising the constitution of the Federal Republic of Nigeria, the Debt Managment 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 Government’s in Nigeria”, she explained.
She revealed that according to the findings of the State Ministry of Finance, “specifically through Mr. Caleb Hyuk, Head of the Debt Managment Unit (DMU), the Kaduna State Government under the leadership of Governor Uba Sani, has not entered into any agreement nor received any foreign loan amounting to $17.9 million as claimed.”
The government further clarified that 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”, she said.
The government further explained that “it is evident that the allegations of borrowing $17.69 million by the Kaduna State Government are baseless. Governor Uba Sani’s administration has not initiated any new borrowing endeavours, and as of the present date, no such funds have been borrowed.”
The statement then urged the general public to “disregard the erroneous report and refrain from succumbing to misinformation.”
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