In 2019, Governor Nasir El-Rufai directed Uba Sani, now Governor of Kaduna State, to seek a $350 million loan.


As someone consistently critical of El-Rufai's policies, Shehu Sani found himself at odds with the former governor once more over this loan issue. But was his stance justified?


Before any state can secure a loan, whether foreign or domestic, it must meet certain criteria outlined in the Debt Management Act 2007.


This includes approval from both the House of Representatives and the Senate, a clear plan for loan utilization, repayment strategies, assessment of financial impact, and assurance of transparent fund management.


Foreign loans to states are essentially borrowed from the federation, with the Federal Government acting as a guarantor.
Kaduna State sought a $350 million loan from the World Bank, similar to Ogun State, but failed to convince the National Assembly of its repayment capability.


Read More: https://naijaupdate.ng/kaduna-350m-loan-shehu-sanis-stand-against-crippling-governance/