The Kaduna State governor, Uba Sani, stated that his administration is struggling to pay worker’s salaries due to the significant debt burden that was inherited from the previous administration. The governor said that the debt consists of $587 million, N85 billion, and 115 contractual liabilities, which have created a challenging financial situation. Uba Sani, stated that despite the State’s substantial debt burden, he has not taken out any loans since taking office nine months ago. He further stated that the debt burden was causing financial difficulties for the State, making it difficult to pay monthly salaries. Mr. Sani explained that the State’s debt consisted of $587 million, N85 billion, and 115 contractual liabilities, and said that Federal Allocations have been insufficient to cover these debts. The governor made these remarks during a Town Hall Meeting in Kaduna.
Sani stated further that due to the rise in the exchange rate, the State is now paying back nearly three times what was borrowed by the previous administration. He explained that N7 billion out of the N10 billion Federal Allocation due to the State in March was deducted to service the debt, leaving only N3 billion to cover the State’s monthly salary bill of N5.2 billion. However, Mr. Sani reassured that the government remains determined to improve the State’s progress and sustainable development, as it has carefully assessed the situation.