KWANKWASIYYA MOVEMENT QUESTIONS ₦55 BN LOCAL GOVERNMENT LOAN, DEMANDS TRANSPARENCY, ACCOUNTABILITY
By Editor
The Kwankwasiyya Movement has expressed concern over reports that the Kano State Government intended to compel the 44 Local Government Councils in the State to undertake loan obligations reportedly amounting to approximately ₦55 billion from a leading commercial bank.
The movement stated this in a statement signed by Dr. Habibu Sale Mohammed its spokesperson.
Mohammed said that each local government council might be forced to assume financial obligations of about N1billion.
“According to the information available to us, each Local Government Council may be required to assume a financial obligation approaching ₦1.3 billion, with the proceeds reportedly earmarked for the establishment of Computer-Based Testing (CBT) centres, an unspecified project and an empowerment programme.
“While we recognise the importance of educational infrastructure and economic empowerment, these objectives must be pursued through transparent, lawful and financially responsible arrangements that protect the interests of the people.
“Our fundamental question is: Why should the 44 Local Government Councils be compelled to assume substantial debt obligations for projects reportedly to be administered by the State Government, rather than being allowed to exercise independent judgment over their financial priorities and development needs?”.
Mohammed questioned the rationale for the loan as well as it’s timing.
“The reported timing of this proposed borrowing raises legitimate questions, particularly with the approaching electoral cycle. Why is a loan of this magnitude necessary at this particular time, and what evidence demonstrates that the proposed projects cannot be funded through existing budgetary provisions and available public revenue?
“Kano State and its Local Government Councils receive public revenue from statutory allocations and other lawful sources. The State Government must therefore explain its revenue position, existing financial commitments and the justification for imposing additional debt obligations on local councils.
“We are not alleging that the proposed loan is intended to finance an election. However, the timing makes it imperative that adequate safeguards be established to ensure that the proceeds are used exclusively for approved public projects and are not diverted, directly or indirectly, to partisan political activities.
“Public borrowing must be driven by demonstrable development needs, not electoral considerations or political convenience,” he said.
