The Zamfara State Government under Governor Dauda Lawal has come out to dispel speculations surrounding the report of the DMO that the state borrowed ₦14.26bn in six months.
In a release, the state government said that the sum of ₦14.26 billion was not borrowed but part of the proceeds from a ₦20 billion loan floated by the previous administration.
The Debt Management Office (DMO) in its latest sub-national debt – domestic and external – had said: “Plateau got ₦16.32bn; Rivers borrowed ₦7.07bn; Zamfara, ₦14.26bn; and the FCT under the leadership of Nyesom Wike borrowed ₦6.75bn from domestic creditors”.
Speaking through the spokesperson of the Zamfara Governor, Sulaiman Bala Idris, revealed that no domestic or external loans have been borrowed since Governor Dauda Lawal took office.
“We would like to clarify the Debt Management Office (DMO) report that the Zamfara State Government borrowed ₦14.26 billion,” 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 ₦20 billion bond but failed to collect the total amount.
“The immediate past government received ₦4 billion out of the 20 billion loans requested for the Zamfara cargo airport project, though the funds were not utilized.
“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 ₦16 billion out of the ₦20 billion borrowed by the past administration is the ₦14.26 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.”
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