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Concerns raised over proposed N55 billion loan for Kano LGAs by Kwankwasiyya

The Kwankwasiyya Movement has raised concerns over a rumoured plan by the Kano State Government to borrow around N55 billion through the 44 LGUs in the state. They are requesting information on the projects that would be funded by the loan and the repayment plan.

The group’s members were worried that the local governments would be saddled with a nearly N1.3 billion debt to pay for empowerment programs, computer-based testing centers, and an unnamed project.

The group issued a statement on Sunday through its spokesman, Dr. Habibu Sale Mohammed, claiming that the state government should clarify why local councils were supposed to shoulder large debts for projects that were supposed to be overseen by the state.

It recognised that empowerment programs and educational infrastructure are important, but it emphasised that these projects must be executed openly and legally.
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Whether the planned projects can be financed through current budgetary provisions and available public revenue is an important question that the government must address before taking this loan. According to the statement, it is also required to reveal its current financial obligations and revenue status, as well as provide an explanation for why the local government councils should incur further debt.

Despite expressing reservations about the proposal’s timing in relation to the upcoming election cycle, the movement clarified that it was not claiming that the loan was meant to fund a particular contest.

But it begged the government to put checks and balances in place to make sure the money wouldn’t go toward unapproved public projects.

Proven development needs, not partisan interests or campaign promises, should motivate public borrowing, the statement emphasised.

In addition, the Kwankwasiyya Movement wanted to know how the loan would be broken down.

A CBT center, an unnamed project, and an empowerment program might each receive around N632.57 million per council, N500 million, and about N117.41 million, respectively, according to the statement.

Claiming that the statistics needed to be cross-checked with the original documents, it demanded that the government provide the sites of the proposed CBT centers, the reasoning behind their cost estimates, and the specifics of the N500 million initiative.

Aside from enquiring about the selection process, the movement wanted the government to reveal how many individuals would gain from the empowerment initiative.

It stated that before taking on such responsibilities, chairmen of local governments should have a thorough understanding of the financial and legal ramifications.

The group’s stance was that the government need to pay back the existing funds before requesting that local governments take on new debt to fund yet another empowerment program.

The campaign demanded that the Kano State House of Assembly reveal whether or not the planned arrangement had been authorised and, if so, to make public the resolution and any supplementary materials.

The report recommended that lawmakers thoroughly review the repayment conditions, project expenses, and legal foundation of the proposed loan before making any commitments.

They also wanted the commercial bank that was supposedly thinking about the facility to verify all of the councils’ powers, their capacity to pay back, and how the money would be used.

It stated that the bank should check that the deal was legal and that safeguards were in place to keep taxpayer funds from being misappropriated.

As an additional point, the movement emphasised that it will be the duty of any next administration to investigate any apparent instances of financial mismanagement or fraud and take corrective action as needed.

Concerning the independence of local governments, the organization demanded a third-party legal evaluation of the proposed system, citing the Supreme Court’s ruling on financial autonomy for local councils from July 2024.

Who would borrow the money, who would control the proceeds, what revenue would be used as security, and which approvals were required—all of which would determine the loan’s legality, it claimed.

Residents’ access to vital services should not be jeopardised by financial responsibilities, the movement emphasised.

The state government was asked to provide details about the proposed loan, including its objective, expected benefits, control mechanisms, and payback terms.

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