By Adedapo Adesanya
The Katsina State Government has refuted the claim by the Debt Management Office (DMO) that the administration of Governor Dikko Radda has increased the state’s debt profile.
A report recently published by the DMO indicated that several states, including Katsina under Governor Radda, collected fresh loans to worsen their prevailing debt crises.
The spokesperson to the Governor, Mr Ibrahim Kaula Mohammed, however, in a statement on Wednesday, faulted the report, stating that the Governor Radda-led government has preoccupied itself with repaying subsisting loans secured by previous administrations since it came on board.
The statement further noted that no new loan has been collected by the present All Progressives Congress (APC) government in the state under Governor Radda.
“This is not to say that the state government will not borrow whenever the need arises. It could borrow to improve the lot of its people and the state in general.
“At the moment, however, there is no new loan. While we appreciate the media’s efforts in keeping the public informed about government activities, we regret any inconvenience the publication might have caused.
“We call on the media, and the members of the public to continue to support the present administration in its effort to provide meaningful projects to uplift the living standard of its citizenry,” the statement added.
Recall that the DMO in June 2023 warned the government of additional borrowing, citing that 73.5 per cent of revenue will be used to service debt. According to the DMO, the high Debt Service-to-Revenue ratio is unsustainable and poses a threat to debt sustainability.
Nigeria’s public debt increased by 10 per cent hitting N97.3 trillion by the end of 2023. The debt office noted that the N97.3 trillion public debt comprises domestic debt of N59.12 trillion and external debt of N38.22 trillion.
