The Kaduna State Government has successfully liquidated over ₦90 billion of the debt it inherited from the previous administration.
Governor Uba Sani made this disclosure while highlighting the fiscal progress his government has achieved since assuming office in May 2023.
According to the Governor, this significant repayment was achieved without the state government resorting to any fresh domestic or foreign loans to fund its operations or projects.
Upon taking the reins of power, the current administration was met with a daunting financial profile consisting of $587 million in external debt and ₦85 billion in domestic liabilities.
The state also inherited 115 uncompleted contracts from the former governor, Nasir El-Rufai. These obligations resulted in a monthly debt servicing bill of approximately ₦6.7 billion, placing Kaduna as the second most indebted state in Nigeria, trailing only behind Lagos.
Governor Sani emphasized that the decision to avoid new borrowing was a deliberate strategy rooted in the state’s current economic realities.
He explained that the administration had to prioritize fiscal discipline to navigate the initial months when federal allocations were barely enough to cover the state’s wage bill.
To save costs, the government even delayed the purchase of official vehicles for top political appointees, focusing instead on critical developmental needs.
Despite these heavy financial burdens, the state has moved forward with an ambitious fiscal plan for the future. The ₦985.9 billion budget for 2026 allocates a substantial 71% to capital expenditure.
This focus on infrastructure and development comes as the administration continues to attract investor commitments, aiming to boost the local economy while maintaining its debt-free borrowing policy.
Reiterating his stance on the state’s financial management, Governor Sani stated, “In the last 3 years, we have been able to pay over N90 Billion of the debt we inherited, and since we came into government, we have not taken any new loans.”
He further clarified the administration’s cautious approach by adding, “Since we came into government, we have not taken any new loan because we believe we do not have fiscal strength to borrow any money.”
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