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Zamfara Govt Clarifies DMO Report, Says It Didn’t Borrow N14.26bn

“It is important to note that the previous Zamfara State Government floated a N20 billion bond but failed to collect the total amount."


Zamfara State Governor, Dauda Lawal. (Photo: Facebook/Dauda Lawal)

 

The Zamfara State Government has disclosed that the sum of N14.26 billion was not borrowed but part of the proceeds from a N20 billion loan floated by the previous administration.

The Debt Management Office (DMO) in its latest sub-national debt – domestic and external – had said: “Plateau got N16.32bn; Rivers borrowed N7.07bn; Zamfara, N14.26bn; and the FCT under the leadership of Nyesom Wike borrowed N6.75bn from domestic creditors”.

But on Monday, the spokesperson of the Zamfara Governor, Sulaiman Bala Idris, revealed that no domestic or external loans have been borrowed since Governor Dauda Lawal took office.

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“We would like to clarify the Debt Management Office (DMO) report that the Zamfara State Government borrowed N14.26 billion,” he said in a statement.

“Zamfara State Government has never applied for loans or approached the State Assembly or National Assembly for such a request.

“It is important to note that the previous Zamfara State Government floated a N20 billion bond but failed to collect the total amount.

“The immediate past government received N4 billion out of the 20 billion loans requested for the Zamfara cargo airport project, though the funds were not utilized.

“Upon assuming office, we discovered that the payment terms made terminating the bond impossible without incurring a significant loss for the state.

“The balance of N16 billion out of the N20 billion borrowed by the past administration is the N14.26 billion captured by the Debt Management Office (DMO). The value is reduced due to inflation.

“The bond balance, which is still in a government account, has not been used and will be reserved for the airport project.”