The Kano State House of Assembly has approved Gov. Abdullahi Umar Ganduje’s request to access N20 billion domestic loans to fund capital projects.
Ganduje had requested the state assembly’s approval to access the sum of N20 billion from the Central Bank of Nigeria (CBN) to execute the Janguza-Durum-Kabo-Karaye road billed at N4.5 billion, the completion of Dangi flyover, the construction of township roads in Rano, Bichi, Gaya and Karaye emirates.
Also, projected for execution are N8 billion for the construction of Muhammad Buhari road interchange at NNPC Hotoro and construction of rural roads across 38 local government areas, which will gulp N6.5 billion.
The legislators, on Monday, at the plenary approved the loan after deliberation and subsequent consent on the report of the house committee on appropriation led by Abba Ibrahim Garko.
Earlier, Garko told the house that Ganduje’s request should be considered following the inability of the government to secure similar approval last year.
In November 2020, the house of assembly approved a similar N20 billion loan earlier requested by Ganduje. The loan required to fund the public health sector was occasioned by the advent of the COVID-19 pandemic.
Similarly, in March, the assembly equally approved Ganduje’s request to access N50 billion domestic debt market to execute infrastructure projects.
But Garko while justifying the committee’s decision to recommend approval of the loan noted that the government reserved the right to reapply for the loan, especially when an earlier attempt was rejected.
According to the available record obtained from the website of the Debt Management Office (DMO), Kano state debt profile as of 31 December 2020 hit $68.4 million (external) and N116.9 billion (domestic).