Posted by Amarachi on Wed 13th Nov, 2024 - tori.ng
To reduce Kano’s debt burden, the current government has paid N3.49 billion in external debt and N60 billion in domestic debt, totalling N63.5 billion for the first and second quarters of 2024.
The Kano State Debt Management Office has said that it serviced N63.5 billion in both foreign and domestic debts incurred during the administration of the immediate past governor, Abdullahi Umar Ganduje.
Dr. Hamisu Sadi Ali, Director General of the Kano State Debt Management Office, made this disclosure while addressing the media on the state’s debt profile.
Dr. Ali noted that the current administration, under Governor Abba Kabir Yusuf, has not incurred any new debt since coming into office on May 29, 2023.
"Since the inception of Alhaji Abba Kabir Yusuf’s NNPP administration from 29th May 2023 to date, no single penny was signed, contracted or received by the Kano State Government within or outside the country as a loan,” he affirmed.
In an effort to reduce Kano’s debt burden, the current government has paid N3.49 billion in external debt and N60 billion in domestic debt, totalling N63.5 billion for the first and second quarters of 2024. With these payments, the state’s total outstanding debt has been reduced to N127.8 billion.
Dr. Ali highlighted that the Kano State Public Debt Management Law 2021 mandates that the Debt Management Office manages all borrowing on behalf of the state government. He added that former Governor Ganduje’s administration had signed multiple international and domestic loan agreements, including a 64 million euro agreement with the French Development Agency in July 2018 for the Third National Urban Water Sector Reform Project.
The debt portfolio includes projects funded by foreign loans, such as the Multi-state Road Project, Malaria Control Booster Project, and the Third National Fadama Project. Dr. Ali clarified that, historically, Kano State had not borrowed from any domestic lenders, including commercial banks, until Ganduje’s administration, which obtained six different loans from various banks, such as a N10 billion Infrastructure Loan from Access Bank and a N20 billion Salary Bail-out from Fidelity Bank.
With this substantial debt repayment, the current administration aims to reduce Kano’s financial burden and improve the state’s economic outlook.