SENATE REJECTS $350M FOREIGN LOAN FOR KADUNA

LEADERSHIP NEWSPAPER

The Senate yesterday rejected the request by Kaduna State government to acquire a foreign loan facility of $350 million.

The Development Policy Operation, DPO (Budget Support) of USD 350 million for Kaduna State was approved by World Bank in 2016 and captured in 2016 – 2018 borrowing plan.

According to the latest Debt Management Office figures, Kaduna State has a total debt stock of USD232.1 million since 1960.

As it stands, the current loan request of USD350 million for Kaduna State will bring its total debt stock to USD582.1 million.

Based on the high debt record of the state, Senate said if the current loan request is approved, the new total debt stock of USD582.1 million for Kaduna State would be unsustainable and necessarily attract huge financial burden on the meager federal allocation to the state.

The Upper Chamber further stated that with the new borrowing, the Debt Service to Revenue Ratio of Kaduna State will further be increased and thus impact negatively on the ability of the state to meet other basic needs of its people...