DMO Report: N14.26 Billion Not Borrowed, but Part of Previous Administration’s Loan-Zamfara Govt

The Zamfara State Government has revealed that the amount of N14.26 billion was not obtained through borrowing, but rather stems from the utilization of funds from a N20 billion loan initiated by the previous administration.

In a statement issued on Monday by Sulaiman Bala Idris, spokesperson for Governor Dauda Lawal, it was clarified that no loans, either domestic or external, have been acquired since the current administration assumed office.

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

“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.

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“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.”