By Uzair Adam Imam
Shehu Sani, the former Senator representing Kaduna Central, has raised the alarm over the suffocating debt burden gripping Kaduna State under the administration of former Governor Nasir El-Rufai.
Sani expressed regret that his warnings against El-Rufai’s aggressive borrowing were ignored, leading the state into a financial crisis of significant proportions.
Speaking to reporters, Sani highlighted the dire consequences of the debt accumulation, emphasizing that if his advice had been heeded, the state would not be grappling with the current predicament.
He recalled facing criticism for opposing a $350 million World Bank loan sought by the El-Rufai administration, foreseeing the looming challenges now faced by the state.
Governor Uba Sani, in a recent town hall meeting, disclosed that the state inherited a staggering debt of $587 million, ₦85 billion, and ₦115 billion in contractual liabilities from the previous administration.
This heavy financial burden has severely hampered the state’s ability to meet its financial obligations, including salary payments.
The current administration disclosed that a substantial portion of the state’s federal allocation is being diverted toward servicing the debt, leaving insufficient funds for essential expenditures such as salary payments.
With the sharp increase in exchange rates, the amount being repaid has almost tripled, exacerbating the financial strain on the state.
Out of the N10 billion received as federal allocation in March, N7 billion was deducted to service the state’s debt, leaving only N3 billion available.
However, this amount falls short of covering the state’s monthly salary bill of N5.2 billion, further exacerbating the financial crisis.
Sani cautioned that the repercussions of the state’s debt burden are now being felt acutely, underscoring the urgent need for concerted efforts to address the financial challenges facing Kaduna State.