Kaduna State Governor Uba Sani said N7 billion was deducted from the state’s N10 billion FAAC allocation for March to service massive debts left by his predecessor Nasiru El-Rufai.
This is the first time Governor Sani is publicly highlighting the massive debt he inherited from El-Rufai.
He, however, said despite this huge debt burden, his administration has not borrowed a single kobo in the last nine months.
The governor disclosed this at a Town Hall Meeting in the state held on Saturday.
He said he inherited a debt burden of $587 million, N85 billion, and 115 contractual liabilities from the last administration.
Governor Sani said due to the rise in the exchange rate, the state is now paying back almost triple of what was borrowed by the El-Rufai’s administration.
He said the huge debt burden is eating deep into the State’s Federal Allocation.
He explained that seven out of the N10 billion Federal Allocation for the State in the month of March was deducted to service the State’s debt.
The Governor further lamented that the state was left with N3 billion, an amount which is not enough to pay salaries, as the state’s monthly salary bill stands at N5.2 billion.
“Despite the huge debt burden of $587 million, N85 billion, and 115 contractual liabilities sadly inherited from the previous administration, we remain resolute in steering Kaduna State towards progress and sustainable development.
“We have conducted a thorough assessment of our situation and are sharpening our focus accordingly.
“It gladdens my heart to inform you that, despite the huge inherited debt on the state, till date, we have not borrowed a single kobo,” he said.
He said his government will also prioritize inclusive development by investing in human capital, stimulating the economy, and providing affordable housing.
The governor further said the key priority areas of his government include Safety and Security, Housing, Education, Healthcare, and Support for Micro, Small, and Medium Enterprises (MSMEs).
Governor Sani highlighted some of his administration’s top priorities for 2024, including safety and security, infrastructural development, education development, house and urban development, social intervention, and investment drive, among others.
Emir of Zazzau Ambassador Ahmad Nuhu Bamali expressed optimism despite the challenges facing the state.
He added that the governor has the capability to turn around the economy of the state for effective development.
Former Chief of Defence Staff, General Martin Luther Agwai (rtd), advised the governor to address the security challenges facing the state.
He said without peace and security, no meaningful development can be achieved.
Agwai further commended the Governor for cutting the cost of governance due to the huge debt of the state.
He urged all residents to eschew political, religious, or ethnic differences and support the state government in overcoming the debt challenge.
