Zamfara Govt Denies Borrowing N14 Billion

Forum 3 weeks ago

Zamfara Govt Denies Borrowing N14 Billion

Zamfara State Governor, Dauda Lawal has dismissed reports that his administration acquired N14.26 billion through a loan.

Governor Lawal’s spokesperson, Sulaiman Bala Idris, clarified in a statement made available to journalists that the money was a portion of the proceeds from a N20 billion bond initiated by the previous administration in the state.

He reiterated that the current administration has not taken any loans, whether domestic or external, since assuming office.

The statement contradicts the report from the Debt Management Office (DMO), which suggests otherwise.

Idris further explained that the previous administration had initiated an N20 billion bond for the Zamfara cargo airport project.

However, only N4 billion was received and not utilized. The remaining balance of N16 billion from the bond is reflected as N14.26 billion in the DMO report, taking into account inflation adjustments.

“It is important to note that the previous Zamfara State government floated a N20 billion bond but failed to collect the total amount.

“The immediate past government received N4 billion out of the N20 billion loan requested for the Zamfara cargo airport project, though the funds were not utilized.

“Upon assuming office, we discovered that the payment terms made terminating the bond impossible without incurring a significant loss for the state.

“The balance of N16 billion out of the N20 billion borrowed by the past administration is the N14.26 billion captured by the Debt Management Office (DMO). The value is reduced due to inflation.

“The bond balance, which is still in a government account, has not been used and will be reserved for the airport project,” Idris said.