Senate rejects Kaduna’s $350m foreign loan request

The Senate yesterday rejected the $350m loan request by the Kaduna State government, three months after the House of Representatives approved it.

The House had in December last year gave its nod to the loan request made on behalf of 10 states by Vice President Yemi Osinbajo in May 2017, while he was acting president.

The rejection followed adoption of report of the Senate committee on local and foreign debts chaired by Senator Shehu Sani (APC, Kaduna).

Sani said the approval of the loan would double the debt profile of the state from $232m to $532m.

“Approving the current loan request of USD350 million for Kaduna State will bring its total debt stock to USD582.1 million. 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,” he said.

Supporting the rejection, Senator Suleiman Othman Hunkuyi (APC, Kaduna) described the loan request as a misplaced priority.

“I strongly stand behind the prayers of the chairman of the committee that this very important chamber, do reject that request for the loan,” he said.

Also, La’ah Senator Danjuma (PDP, Kaduna) said “If you are collecting a loan without giving a reason, I am not in support of such loan; my people are also not in support of it. Please, this loan should not be granted.”

The Deputy Senate leader, Bala Ibn Na’Allah said, “Three senators who have so far spoken on this matter coincidentally, they are from Kaduna State. It appears that the three senators are in agreement that the recommendations of the committee should be upheld by this Senate.”

When Deputy Senate President Ike Ekweremadu, who presided the plenary put the question on the recommendation of the committee; majority of senators voted in affirmative.