The Zamfara State Government said the sum of 14.26 billion was not borrowed but is part of the proceeds from a 20 billion naira loan floated by the previous administration.
This was contained in a statement signed by the spokesperson of the Governor, Sulaiman Bala Idris, and made available to newsmen in Gusau the state capital.
The statement revealed that no domestic or external loans have been borrowed since Governor Dauda Lawal took office.
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It also clarifies the Debt Management Office (DMO) report that the Zamfara State Government borrowed N14.26 billion naira adding that, the State Government has never applied for loans or approached the State Assembly or National Assembly for such a request.
Sulaiman Bala further explained that it is important to note that the previous Zamfara state government floated an N20 billion bond but failed to collect the total amount.
According to him, the immediate administration received N4 billion naira out of the 20 billion loans requested for the Zamfara cargo airport project, though the funds were not utilized.
It added that, upon assuming office, they discovered that, the payment terms made terminating the bond impossible without incurring a significant loss for the state.
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Thbalancefe Of N16 billion Naira out of the N20 billion borrowed by the past administration is the N14.26 billion captured by the Debt Management Office (DMO), whose 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.