Connect with us


Kwara govt releases debt profile figure (See breakdown)



Kwara govt releases debt profile figure (See breakdown)

Gov. Ahmed

The Kwara State Government clarified that the state’s current debt portfolio stands at N30,203,632,608.29 with a monthly repayment of N496,367,109.08, ROYAL NEWS reports.

The Commissioner for Finance in the state, Alhaji Demola Banu, on Tueday said “the debt stood at N31,481,082,712.95 in 2017 and N30,751,665,421.83 at the end of 2018, contrary to social media speculation of N50.2billion.

Giving a breakdown of the current indebtedness, Banu explained that “the N30.2b includes N15,325,541,483.03 as the balance of the Federal Government restructured loan, N4,002,948,667.07 as salary bail out, excess crude account loan outstanding of N9,324,613,607.52 and vehicle loan balance of N128,916,612.87.

“Others are the Commercial Agriculture Credit Scheme (CACS) and Anchor Borrowers Programme (ABP) Agriculture Scheme with respective balances of N646,213,285.03 and N679,233,857.13 as well as International Aviation College loan balance of N96,165,095.64.”

While clarifying that the repayment of N496,367,109.08 is deducted from the state’s monthly federal allocation, Banu added that the figure includes a monthly deduction of N39,632,016.56 as repayment for foreign loans obtained by the government in the 1970s.

Giving a further breakdown, Banu explained that the federal government restructured the state government’s short- and long-term bank loans to reduce monthly repayment, while the state also benefitted from a N5b salary bailout loan in 2015.

Additionally, the commissioner stated that the excess crude account loans were federal government-backed bank facilities which served as seed money for the Kwara State Infrastructure Development Fund (IF-K) and payment for ongoing projects in the state while CACS and ABP are state-government guaranteed Central Bank of Nigeria (CBN) loans to farmers in the state.

Facebook Comments Box
Kwara govt releases debt profile figure (See breakdown)

Copyright 2022 ROYAL NEWS. All rights reserved. Digital material on this website, may not be published, reproduced, broadcast, rewritten or redistributed in whole or in part without prior express written permission from ROYAL NEWS.


Download ROYAL NEWS app

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *