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Why Kaduna’s $350m loan request is delayed in Senate

The political rivalry between Senator Shehu Sani and Governor Nasir el-Rufai has come between the Kaduna State government’s bid to obtain a $350 million (about…

The political rivalry between Senator Shehu Sani and Governor Nasir el-Rufai has come between the Kaduna State government’s bid to obtain a $350 million (about N12 billion) loan facility from the World Bank, Daily Trust reports.

The Kaduna State Government had through the Federal Government submitted a request to the Senate for approval for the loan which the state government says would be used to improve healthcare delivery, develop the education sector and build infrastructure in the state.

Senator Sani, who is the chairman of the Senate Committee on local and foreign debts, told newsmen at the Nigeria Union of Journalists (NUJ) Kaduna State Council that the delay in the passage of the request was not due to any sentiment but to follow due process.

He said over 22 states forwarded their request through the president which was forwarded to his committee for assessment and were subjected to the same process adding that requests from nine states are currently pending including that of Kaduna with some requesting for as low as $35 million while that of Kaduna is $350 million.

 “As a committee, we are committed to doing our job effectively without any form of sentiments or political inclinations and we will be guided by the law. We are aware that loan of that magnitude will need to be repaid back in about 3-5 decades.

 “I have a duty that the next generation doesn’t inherit debt that they cannot pay and if debt must be left behind, a commensurate infrastructure to justify such debts must equally be left behind.”

 He said in view of this the Senate must ensure that things are done rightly and be convinced beyond reasonable doubt what the funds will be used for. 

 “No amount of protest or any form of intimidation can make me to append my signature on anything that is wrong, all requests must follow due process such as verifying the debt profile of the state, whether or not the debt will be a burden on the state among others.” 

Earlier, Samuel Aruwan, the senior special assistant to the Kaduna State Governor on media and publicity said the allegations that the loan are not attached to specific projects are not true as the Kaduna State Government had taken every step in compliance with the procedure for obtaining a loan before submitting the request.

He said it is ridiculous for anybody to suggest the loans are not tied to specific projects as the state government’s projection on the improvements of health care in the state, refurbishment of over 4000 public schools and for the development of infrastructure in the state are not in doubt and we’re amply stated in the request.

Aruwan said the loan was repayable over a period of 50 years at an interest rate of 0.5 percent and that every detail concerning the loan was taken into consideration for the benefit of the people of the state.

The loan is not for an individual but for the development of our health sector, to provide quality education and for the development of infrastructure in the state and these were clearly spelt out,” he said.

Aruwan said he will be surprised if any elected senator from the state would be against what would be beneficial to the people of Kaduna stressing that as far as he knows, the state government has no problem with any senator from the state.

“So we have no problem with any senator as we believe everybody should support efforts  for the development of the state which Kaduna has become a leading example to other states who are eager to learn from our experience and develop their states,” he said.

The All Progressives Congress (APC) in Kaduna state on its part declared support for the state government’s plan to access the $350 million World Bank loan.

Spokesman of the caucus and member, House of Representatives representing Sabongari federal constituency, Datti Mohammed Babawo, said the meeting resolved that the loan, which has a moratorium of 10 years and 50 years repayment at 0.5% interest, will be used to rehabilitate and equip primary and secondary schools in the state, build and equip health facilities, revive moribund industries and complete roads.

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