In a startling revelation, Governor Uba Sani of Kaduna State has disclosed that his administration inherited a staggering debt burden totaling $587 million, N85 billion, and 115 contractual liabilities from the previous government, significantly hampering efforts to meet the state's financial obligations, including the payment of workers' salaries.
Addressing constituents at a Town Hall Meeting in Kaduna on Saturday, Governor Sani expressed deep concern over the immense debt inherited by his administration, emphasizing that it has severely impacted the state's ability to manage its finances effectively.
Despite the daunting financial challenges, Governor Sani reassured the public that his administration has not resorted to borrowing any additional funds over the past nine months. He underscored the government's commitment to fiscal responsibility and prudent financial management practices amid the prevailing economic constraints.
The governor lamented that the substantial debt burden, coupled with the depreciation of the national currency, has led to a significant increase in debt servicing costs for the state. He revealed that a substantial portion of the state's monthly Federal Allocation is allocated towards servicing these debts, leaving limited resources for essential expenditures such as salary payments.
Governor Sani highlighted the financial strain faced by the state, disclosing that a substantial portion of the March Federal Allocation was deducted to service the existing debt, leaving the state with insufficient funds to cover its monthly salary bill of N5.2 billion.
Despite the daunting fiscal challenges, Governor Sani affirmed his administration's unwavering commitment to steering Kaduna State towards progress and sustainable development. He emphasized that the government has conducted a comprehensive assessment of the state's financial situation and is taking decisive measures to address the prevailing economic challenges effectively.
"It gladdened my heart to inform you that, despite the huge inherited debt burden on the state, till date, we have not borrowed a single kobo," Governor Sani stated, reaffirming his administration's dedication to prudent financial management practices.
The governor's remarks shed light on the complex financial landscape facing Kaduna State and underscore the imperative for decisive action to address the burgeoning debt burden and restore fiscal stability in the state.
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