Wednesday, April 17, 2024
MARKET UPDATE
Advertisement Topt

TheCable

Advertisement lead

‘We never applied for N14.26bn loans’ – Zamfara governor faults DMO report

‘We never applied for N14.26bn loans’ – Zamfara governor faults DMO report
April 02
08:59 2024

Dauda Lawal, governor of Zamfara state, says his administration never borrowed N14.26 billion as disclosed in the Debt Management Office (DMO) report.

According to him, the debt reported by DMO was part of the proceeds from a N20 billion loan floated by the previous administration in the state.

The governor disclosed in a statement by Suleiman Idris, his spokesperson, on Monday.

Lawal said no domestic or external loans have been borrowed since he assumed office as governor of the state.

Advertisement

“We would like to clarify the Debt Management Office (DMO) report that the Zamfara State Government borrowed N14.26 billion naira,” he said.

“Zamfara State Government has never applied for loans or approached the State Assembly or National Assembly for such a request.

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

Advertisement

“The immediate past government received N4 billion naira out of the 20 billion loans requested for the Zamfara cargo airport project, though the funds were not utilised.

“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 Naira 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.”

Advertisement

Analysing the DMO report, TheCable Index reported Zamfara state’s domestic debt was N96.31 billion in June 2023, and by December last year, the debt had increased to N110.57 billion in six months under the new administration.

Click on the link below to join TheCable Channel on WhatsApp for your Breaking News, Business Analysis, Politics, Fact Check, Sports and Entertainment News!

Tags

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment

error: Content is protected from copying.