The Kano State Debt Management Office has reported servicing N63.5 billion in both foreign and domestic debts accumulated under the administration of former Governor Abdullahi Umar Ganduje.
Dr. Hamisu Sadi Ali, Director General of the Kano State Debt Management Office, disclosed this during a media briefing on the state’s debt profile, noting the commitment of the current administration to reducing the debt burden.
Since Governor Abba Kabir Yusuf took office on May 29, 2023, no new debt has been contracted by the state. “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,” Dr. Ali affirmed.
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The debt servicing payments made by the Yusuf administration amount to N3.49 billion in external debt and N60 billion in domestic debt, totaling N63.5 billion for the first half of 2024. These repayments have brought the state’s outstanding debt down to N127.8 billion.
Dr. Ali emphasized the importance of the Kano State Public Debt Management Law 2021, which mandates that all borrowing on behalf of the state must be managed by the Debt Management Office.
He explained that much of Kano’s current debt originated from loans signed during Ganduje’s administration, including a 64 million euro agreement with the French Development Agency for the Third National Urban Water Sector Reform Project, signed in July 2018.
The debt portfolio includes multiple projects funded by foreign loans, such as the Multi-state Road Project, the Malaria Control Booster Project, and the Third National Fadama Project.
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Historically, Kano State had not borrowed from domestic lenders until Ganduje’s administration, which signed agreements for six loans from various banks, including a N10 billion infrastructure loan from Access Bank and a N20 billion salary bailout from Fidelity Bank.
Through these substantial debt repayments, the Yusuf administration aims to reduce Kano’s financial liabilities and improve the state’s economic outlook.
Dr. Ali expressed the government’s commitment to transparent and responsible financial management, with a focus on minimizing debt while maximizing the state’s resources for development and growth.