The Kaduna State government has stated that the state was not one of those that benefited from the debt relief during the President Olusegun Obasanjo’s regime, but rather the present administration inherited huge debts taken by past administrations since 1965.
The Kaduna state Commissioner for Finance, Sama’ila Aliyu reiterated this fact while speaking at a post-budget briefing held in Kaduna on Wednesday saying that the present administration inherited a debt of about N37.5 billion as at December 31, 2013.
The finance commissioner said the debt relief, which the country enjoyed in 2006, was loan collected from Paris and London clubs, which the state has never borrowed from. He said the state loans were from multilateral institutions such as the World Bank, International Development Bank (IDA), and Africa Development Bank (AFDB).
He said, "In 2006 there was reconciliation and sharing of debt obtained as far back as 1965 between the new Kaduna State and Katsina State. The actual balances outstanding against Kaduna State were USD84, 995,475.13.”
"These loans do not form part of the debt relief from Paris and London Club. They are loans obtained from multilateral institutions such as the World Bank, International Development Bank (IDA) and Africa Development Bank (AfDB).
"Over the years subsequent administration in the state continued to borrow from these financial institution for various infrastructural development projects amounted to USD185, 968,750.26".
He added that the state was working persistently to settle the debts.
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