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Saturday, 31 March 2018

El-Rufai blasts Kaduna senators for rejecting $350m world bank loan request

- Kaduna state governor has blasted senators from the state for speaking against his loan request

- Senator Shehu Sani, Senator Suleiman Hunkuyi, Senator Danjuma La’ah, a PDP senator all spoke against the loan

- The Kaduna state governor accused the senators of elevating their personal frustrations above the rights of the people

Governor Nasiru El-Rufa’i of Kaduna state has lashed out at Senators from the state for their roles in the rejection of the 350 million dollars World Bank loan for Kaduna state

Senator Shehu Sani who represents Kaduna central, Senator Suleiman Hunkuyi, the senator representing Kaduna North, Senator Danjuma La’ah, a PDP senator who represents Kaduna South all spoke against the loan on the floor of the Senate.

El Rufai who made his feeling know on Facebook accused the senators of elevating their personal frustrations above the rights of the people.

"The Nigerian Senate has elevated the ego of some of its members above the demands of public policy. As the three senators from Kaduna state spoke, it was apparent that they have put their personal frustrations above the right of the people of Kaduna state to decent investment in human capital development through good schools and hospitals, and better quality of life and accelerated economic growth through the provision of infrastructure.

"We are grateful to the House of Representatives for its kind endorsement of the request. We march on with the task of governing the state, and we shall continue to enjoy the support of our development partners," he wrote.

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NAIJ.com recalls that the Senate on Thursday, March 29, rejected the request of Gov. Nasiru El-Rufa’i to secure a 350 million dollar World Bank loan for Kaduna state.

The senators rejected the request on the premise that obtaining the loan may put so much pressure on the management of the state which presently has a debt burden of $232.1 million.

The News Agency of Nigeria reports that the Senate took the stand after accepting the recommendations of its Committee on Local and Foreign Debt and contributions by all the three Senators from the state, who declined support to the loan request.

Sen. Shehu Sani, who presented the report on Kaduna State Development Policy Operation (DPO) Credit Facility from the World Bank, said although it was approved by the bank in 2016, accepting the loan would compound the financial situation of the state.

He said that if approved, the state total debt stock would rise to $582.1 million

Sani explained that the world bank facility was captured in the 2016 – 2018 borrowing plan as approved by the National Assembly and has attractive low financing data of 1.25 percent interest; moratorium of 5 years and a 25 year maturity tenor.

He added that the facility was also captured in the 2016-2018 Medium Term Expenditure Framework (MTEF).

“According to the latest Debt Management Office figures, Kaduna State has a total debt stock of $232.1 million,” he said, adding that approving the $350 million loan request would bring the state’s total debt stock to $582.1 million.

It would be unsustainable and a huge burden on the state’s finances, the senator, who represents Kaduna central said.

“With the new borrowing, the Debt Service to Revenue Ratio of Kaduna state will further be increased and thus impact negatively on the ability of the state to meet other basic needs of its people.

“The new debt stock will likely, further erode the economic viability of the state,” he said.

Also, Sen. Suleiman Hunkuyi (APC-Kaduna North) said the loan was a misplaced priority and should be rejected.

“One is amazed to find out what the governor has gone ahead to indicate to the public is completely different from what we found in the application of those facilities.

“I am a representative of my people; for whatever reason the Nigerian law stipulates, this chamber shall moderate to approve for such facility.

“I crave the indulgence of our colleagues that the application of that loan among other things is indeed a misplaced priority as we have clearly seen and hence strongly stand behind the prayer that this chamber do reject the request for the loan.’’

Similarly, Sen. Danjuma La’ah (PDP-Kaduna South) said “I feel the loan is not important and I am a messenger of my people, my constituency.

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“My constituency did not give me the authority for a loan to be approved for whatever reason.

“The money received by Kaduna state is much; I cannot understand how there is nothing happening in Kaduna.

“The government is busy retiring people, sacking people, they are asking for money to do what with the loan. This loan should not be granted,” he said.

In his contribution, Deputy Senate Leader, Bala Na’Allah urged the senate to reject the loan request.

“We live in a democratic society; you do not look at the representative of the people, you look at the people they are representing.

“Three senators have so far spoken on this matter and it happens they are from Kaduna.

“It appears that apart from the resolution of the main committee, the senators appear to be in agreement that the recommendation of the committee should be upheld by the senate,” he said.

NAIJ.com had reported that a chieftain of the All Progressives Congress (APC) Dan’azumi Mai Lambu said that the party may lose election in Kaduna state if the squabble in the state continues, Leadership reports.

Lambu said the continued crisis between some notable members of the party in Kaduna and the state governor Nasiru El-Rufai must be stopped.

He urged the warring parties to thread with caution to avoid jeopardizing the existing goodwill of the APC throughout the two years reign of President Muhammadu Buhari.

What does Nigeria need right now? (Nigerian Street Interview) on NAIJ.com TV.

Source: Naija.ng



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