Uba Sani’s Kaduna Government Takes On N36 Billion Debt In Six Months, More Than Total Loans From 2022 And 2023

Uba Sani’s Kaduna Government Takes On N36 Billion Debt In Six Months, More Than Total Loans From 2022 And 2023....KINDLY READ THE FULL STORY HERE▶

Kaduna State’s debt profile has experienced a dramatic increase, with the state borrowing N36 billion in just six months. This amount exceeds the combined total of N29.6 billion borrowed in both 2022 and 2023…….CONTINUE READING 

A review of the second-quarter budget performance document by SaharaReporters reveals that the Kaduna State Government has failed to uphold its promises to avoid further debt accumulation. Specifically, the state borrowed N3 billion in 2022 and N26.6 billion in 2023. Alarmingly, debt servicing already amounts to N28 billion for the first half of 2024.

This swift rise in debt raises significant concerns, especially in light of Fitch Ratings’ assessment, which indicates that Kaduna’s debt has escalated sharply since 2019 due to loans from multilateral institutions and local banks. The rating agency projects that the state’s net adjusted debt could reach N1.5 trillion by 2028, driven by an ambitious N1 trillion capital expenditure plan for infrastructure development.

Kaduna’s financial outlook is precarious, with a ‘Vulnerable’ risk profile and a ‘bb’ debt sustainability rating. Revenue growth is impeded by a weak socioeconomic landscape and a heavy reliance on federal government transfers.

Earlier this year, Uba Sani, the current governor, criticized the loans taken by his predecessor, Nasir El-Rufai, asserting his commitment to developing the state using its “lean resources.” He highlighted the detrimental impact of El-Rufai’s borrowing and promised to avoid further debt.

Concerns about state borrowing in Nigeria are widespread, with commentators noting its adverse effects on developmental progress. Experts have called for greater prudence in revenue management and accountability to help states better manage their limited resources.

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