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Kaduna senators caution banks against granting loan to state govt

Gov. Nasir el-Rufai of Kaduna State

By Cecilia Ijuo

  The three senators representing Kaduna State in the National Assembly have advised local and foreign banks against granting loan to Kaduna State Government.

The senators, Shehu Sani, Suleiman Hunkuyi and Danjuma La’ah, made the call in a statement on Wednesday in Abuja.

They said that information available to them indicated that the state government was considering the option of loan from the banks after the Senate refused to approve 350 million dollar loan for it.

The lawmakers warned that the state was not viable enough to seek loan from any commercial bank.

They said “the Kaduna State Government recently failed the legal litmus test in obtaining a World Bank facility to the tune of 350 million dollars through the process of the Nigerian Senate.

“Information available to us, the three senators representing Kaduna State, confirms the resort by the state to seek other routes in obtaining loans, local and international.

“The general public should note the extent of desperation the state’s Chief Executive went to on personalising the official disapproval of the loan which was officially reported by the Senate and backed by Debt Management Office official reports.

“It is imperative to mention here that Kaduna State solvency in collecting such loans and obviously and objectively, is incapable of carrying such huge debt burdens.

“The moral causes of a government, few months from election, with no clear public support and sympathy to be re-elected aside, the recklessness with which loans are heaped on the state from many commercial banks calls for caution.’’

According to them, it is imperative to alert chief executives of local commercial banks, finance houses and foreign finance managers to adhere to commercial and ethical responsibilities in doing business with the state government.

The senators also advised banks and finance managers not to only seek approval of Kaduna State Legislature, but to also refer to DMO for correct indices and reports of current debt status of the state.

“For the Kaduna State House of Assembly, it is worthy for you to be reminded that you are in those offices to protect the interest and integrity of the people.

“The three senators want to use this medium to also thank the general public in our dear state for the understanding and support for us to continue to do our duties, no matter the intimidation,” they stated.

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