Activist lauds kDSG for pulling out of FG NG-CARES Programme

From: Femi Oyelola Kaduna

A civil Society Activist Comrade Bako Abdul Usman has applauded the Kaduna state Government under the leadership of Governor Senator Uba Sani for pulling out of the Federal government NG-CARES Programme.
In a statement made available to the media in Kaduna yesterday, Comrade Bako said the NG-CARES intervention is laudable as it is targeted at supporting vulnerable populations, and small businesses, and stimulating economic growth, however, the question many are not asking is at what cost.
He explained that the NG-CARES Programme is a $750 million World Bank loan borrowed by the Federal Government. The FG on the other hand is on-lending the funds to the 36 states and the FCT to implement the programme.
According to him based on this arrangement, each state and FCT can access up to $20 million at an interest rate of 2% per annum with a moratorium of 6 months before repayment begins. The states and FCT are expected to repay the loan to the Federal Government over some time.
“Many do not know that the NG-CARES is being funded by a loan. Already as admitted by my Governor and as revealed in the probe report of the State House of Assembly, the state is hugely indebted and it is not sustainable.
“With the current debt burden, it is not advisable that we should continue to borrow.
“The state needs to prioritize its borrowing for effective debt management to avoid a debt crisis that will drown it.
“Some of these loans like the NG-CARES can be stepped down until the state is in a position to accomplish it. This is the time my Governor needs to show prudence in managing our finances as a state.”