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If Kaduna state were to allocate its annual budget on debt repayment, it could take years- Suleiman

opera.com 2024/4/12

Governor Uba Sani inherited a large debt from his predecessor, Nasir El-Rufai, which has created concerns about Kaduna State's financial stability, according to Abdul-Azeez Suleiman, a spokesman for the Northern Elders Forum. He cautioned that the state's N85 billion and $587 million debt load would make it more difficult to meet financial obligations, including as paying civil servant salaries.

Suleiman further underlined the serious impact this massive debt load is having on Kaduna's budget, which may have long-term ramifications for the people who live there. He noted that thorough data on the state's existing revenue streams, debt servicing expenses, and debt repayment timetable is required to determine how long Kaduna will take to pay back this enormous debt; however, this data is currently unavailable.

According to The Sun, Suleiman said, “The disclosure regarding the staggering debt inherited by Uba Sani from his predecessor, Nasir El-Rufai, has raised serious concerns about the state’s financial stability. With a debt burden of N85 billion and $587 million weighing down on the government, the ability to meet financial obligations, especially the payment of salaries to civil servants, is severely compromised. The implications of this massive debt load on Kaduna’s finances are dire, with long-term repercussions for the people of the state.

“It is important to estimate how long it will take for Kaduna State to repay this staggering amount of debt. Without detailed information on the state’s current revenue streams, debt servicing costs, and debt repayment schedule, it is difficult to provide an accurate estimate. However, based on a rough calculation, if the state were to allocate a significant portion of its annual budget to debt repayment, it could potentially take several years, if not decades, to fully pay off the debt."

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