The Senate on Thursday rejected approval of $350 million Kaduna State Development Policy Operation Credit Facility from the World Bank.
This followed the recommendation by the Senate Committee on Local and Foreign Debts.
Presenting his report, Chairman of the committee, Shehu Sani, who also hails from Kaduna State, explained that the state was already indebted to the tune of $232 million.
He noted that the approval of the loan would raise the debt profile of the state to $582 million.
This, he said, would leave huge debt burden for the next generation, adding that the state is the second most indebted state in Nigeria after Lagos.
“The new debt stock will likely, further erode the economic viability of the State.
“The Committee recommends that the Senate do reject the request of USD350 million for Kaduna State as contained in the 2015 2018 External Borrowing (Rolling) Plan of Mr. President, Commander-in-Chief of the Armed Forces.
“That with the high total debt stock of Kaduna State at the moment, the new borrowing sought, will make the debt service to revenue ratio high, thereby worsening the State Government’s ability to meet its other basic obligations to the people and further erode the economic viability of the State,” Sani stated.
Beside Sani, the two other senators from the state, Danjuma La’ah and Suleiman Hunkuyi also rejected the foreign loan, saying the state finances will suffer.
They emphasised that the loan request failed to address key issues that would have aided its approval.
Specifically, Hunkuyi said it was unfortunate that the Governor of the state, Nasir El-Rufai, only asked his Commissioner for Women Affairs and other Special Assistants to approve the loan at the State Executive Committee meeting, adding that it fell short of 18 key government officials as required by the World Bank.
Deputy Senate President Ike Ekweremadu who presided over the session sustained the rejection having put the motion to voice votes and it was overwhelmingly rejected.
OWEDE AGBAJILEKE, Abuja
