Kaduna State Governor Unveils: Debt Crisis Thwarts Salary Payouts

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Kaduna State Governor, Uba Sani, expressed concern over the substantial debt inherited from his predecessor on May 29, 2023. He revealed that the state’s remaining funds are insufficient to cover salaries.

During a Town Hall Meeting at the Umaru Musa Yar’Adua Hall in Kaduna, he disclosed that his administration inherited a total of $587m, N85bn, and 115 contract liabilities from the previous governor. Despite this, he affirmed that his government has not incurred additional debt in the past nine months, although the inherited debt significantly impacts the state’s Federal Allocation.

Governor Sani highlighted that the increasing exchange rate has tripled the repayment amount of the debt incurred by Nasir El-Rufai’s administration. He explained that N7bn of the N10bn Federal Allocation for the state in March was used for debt servicing, leaving the state with N3 billion. This amount, he noted, falls short of the state’s monthly wage bill of N5.2bn.

Despite these financial challenges, Governor Sani assured Kaduna State residents of his administration’s commitment to progress and sustainable development. He stated, “Despite the significant debt burden of $587m, N85bn, and 115 Contractual Liabilities inherited from the previous administration, we remain steadfast in guiding Kaduna State towards progress and sustainable development. We have conducted a comprehensive assessment of our situation and are adjusting our focus accordingly.”

He further shared that his government has not borrowed any additional funds despite the inherited debt. He outlined the key priority areas of his administration, including safety and security, housing, education, healthcare, and support for Micro, Small, and Medium Enterprises (MSMEs). He emphasized the government’s commitment to inclusive development through investment in human capital, economic stimulation, and affordable housing provision.

On the security front, he reported significant progress, including the recruitment of 7,000 additional personnel for the state Vigilance Service and the procurement of over 100 operational vehicles and 100 motorcycles for KADVS and federal security agencies operating in the state.

In terms of education, Governor Sani mentioned the establishment of several skills and vocational cities to address skills deficits in the state. He also shared that his administration is collaborating with Kuwait to reduce the number of out-of-school children in Kaduna by 200,000.

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