THE governors of Kaduna and Cross River States, Sani Uba and Bassey Otu have denied taking nor signing any fresh loan, both domestic and foreign, since the inception of his administration on May 29, 2023, till date.
In a press statement, Shizzer Nasara Bada, the Kaduna State Commissioner of Finance, called on the public to disregard the “blatant falsehood” as a creation of some mischievous people to undermine the credibility of the Governor Uba Sani-led administration.
“We did not borrow the said amount or any other reported. The claims are entirely fabricated. There is a 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, 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.” The commissioner said.
“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.”
Speaking through his Chief Press Secretary, Nsa Gill, Governor Otu wondered how the Debt Management Office arrived at N220.2billion as the domestic debt profile of Cross River State as of December 2023, up from N204.04billion posted for the state as of June 30th, 2023.
He said that the difference in the figures, subtracting N204billion from N220.2billion is the purported N16.2billion reported as a fresh domestic loan allegedly obtained by Governor Bassey Otu’s administration.
The spokesman to the governor said that “This is not true.”
“There’s no record in the annals of the State government that suggests that fresh borrowing was undertaken; since the inception of the present administration till date; both domestic and foreign debt.”
