Why I can’t pay salaries without borrowing

Kaduna State Governor, Uba Sani, says he can’t pay salaries without borrowing because former Governor Nasir El-Rufai’s government left $587m, N85bn and N115bn “contractual liabilities.”

Kaduna State Governor, Senator Uba Sani, has lamented the huge debt burden inherited from the previous administration in the state, has taken a toll on his government.

Speaking on Saturday at a Town Hall Meeting, tagged: “The State of Kaduna state”, Sani said the situation is such that the government will have to borrow to be able to pay workers salaries.

Nasir El-Rufai, who handed over to Sani, governed the state for eight years.

According to him, the debt burden includes $587m, N85b and N115b contractual liabilities, “sadly inherited from the previous administration”.
The governor however declared that despite the financial challenges, his administration remains resolute in steering the state towards progress and sustainable development.

According to him, Kaduna state only receives N3.6 billion after deduction of N7.2 billion for debt servicing.

“What we received from the federal allocation in Kaduna this month was N3.6 billion out of over N10 billion. The sum of N7.5 billion was deducted from our allocation to service debts.

“We cannot pay salaries without borrowing. Our salary bill is N5.2 billion. We will have to borrow N2 billion to be able to pay salaries.”

Speaking further, the governor said he had approached President Bola Tinubu for assistance.

Sani said, “I have taken our cry to the President over these deductions. The President told me that the debt of $556 million is a World Bank debt and there is nothing he can do about it.

“He however promised to see how he could help us. Some of my governor colleagues have also promised to approach the President to assist Kaduna. In the next three months we will be collecting N3.6 billion from the federal allocation.”

Sani said, “Despite the huge debt burden of $587 million , N85 billion , and N115 billion Naira contractual liabilities sadly inherited from the previous administration, we remain resolute in steering Kaduna State towards progress and sustainable development.

“We have conducted a thorough assessment of our situation and are sharpening our focus accordingly.

“It gladdened my heart to inform you that, despite the huge inherited debt on the state, till date, we have not borrowed a single kobo.

He said the the priority areas of his government include safety and security, Housing, Education, Healthcare, and Support for Micro, Small, and Medium Enterprises (MSMEs).

“We are also prioritizing inclusive development by investing in human capital, stimulating the economy, and providing affordable housing.”

The governor appealed to citizens of the state, especially, workers to understand the present predicament being faced by the state.

He said since coming to office a lot of progress had been made in improving our security by revamping of Kaduna State Vigilance Service (KADVS); recruitment of 7,000 additional personnel for KADVS; training and equipping of the newly recruited personnel; building of additional security outposts for KADVS at the seven LGAs that are prone to insecurity; purchasing of Hilux vehicles and 100 motorcycles for Kaduna Vigilance Service (KADVS) to enhance their operations.

“We are strengthening our collaboration with security agencies and fashioning more effective strategies to checkmate and degrade the evil elements laying siege to our communities.

“We are also closely engaging with neighboring states to develop joint strategies and carry out joint operations against the criminal elements.”
The Town Hall meeting was attended by traditional rulers, members of the Kaduna Elders Council, Religious leaders and top government officials among others.

By John Shiklam in Kaduna( Arise News, minus headline)