W/Bank Loan: ‘You Put Personal Frustration Ahead Of Kaduna People’, El-Rufai Blasts Kaduna Senators

Mallam Nasir El-Rufai, Kaduna State governor, has criticized the three Senators from the state over the Senate’s decision to reject the $350 million World Bank loan request of the state.

Recall that the Senate on Friday, rejected the Kaduna State Development Policy Operation (DPO) in the sum of $350 million as contained in the 2016 – 2018 External Borrowing (Rolling) Plan of President Muhammadu Buhari.

The lawmakers rejected the request on the premise that obtaining the loan may put so much pressure on the management of the state which presently has a debt burden of $232.1 million.

The Upper legislative House took the stand after accepting the recommendations of its Committee on Local and Foreign Debt and contributions by all the three Senators from the state, who declined support to the loan request.

But reacting, the Kaduna State government accused the three Senators, Shehu Sani, APC, Kaduna Central; Suleiman Hunkuyi, APC, Kaduna North and La’ah Danjuma, PDP, Kaduna South, representing the Senatorial districts of the state, of putting their “personal frustrations above the right of the people of Kaduna State”.

Suleiman Abdu Kwari, Kaduna State Commissioner of Finance, said this in a press conference on the state government’s position of the World Bank approved loan rejected by the Nigerian Senate.

Kwari said the senators has denied the state decent investment in human capital development through good schools, hospitals, and better quality of life.

The commissioner, who further gave facts while the state can sustainably manage the loan, also thanked the House of Representatives for endorsing the request.

Gov Nasir El-Rufai declared a state of emergency in education and started to fix schools and buy furniture. After fixing almost 10% of our over 4200 primary schools, the government realised that it would need a minimum of N60bn just to fix primary schools. #KadunaWBLoan pic.twitter.com/66w9266cHk

— Governor Kaduna (@GovKaduna) March 30, 2018

A lot more would be needed to actually build new schools that can have enough classrooms, staff rooms and other facilities. There was no doubt that we would need support to raise the required resources. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

Shortly after assuming office, Gov El-Rufai took an album that our @KDMobp ministry had compiled showing pictures of our schools, and shared it with the federal Minister of Finance, and subsequently, our development partners, including the World Bank. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

That is how the conversation that led to the World Bank loan started. The World Bank scrutinised Kaduna State and they are convinced we meet their standards. We have healthy Fitch ratings B” Credit Rating with Stable Outlook. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

In November 2016, Fitch Ratings assigned Kaduna State a long-term foreign and local currency Issuer Default Ratings (IDRs) of “B” and a National long-term rating of A+(nga) with stable outlooks. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

Having checked our laws, our accounts and our performance, the World Bank was convinced that Kaduna State merits their support. Therefore, on 20th June 2017, the World Bank announced that it has decided to provide a budget support facility of $350m to Kaduna State. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

Our Commissioners have appeared before the relevant committees of the Senate and the House of Representatives, and presented detailed explanations for the rationale and the purposes of the loan. Our delegates were commended for the quality of their presentations. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

Nobody in those committees of the National Assembly can honestly claim not to be aware of the justification and the purpose of the loan. In fact, the @HouseNGR endorsed the loan. When our officials appeared before the @NGRSenate , no questions were asked. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

The excuse given on the floor of the Senate as to the size of the loan is baseless. The creditor and the ratings agency have adjudged that Kaduna State can sustainably manage the credit which has a 10-year moratorium and a 40-year repayment period. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

The State average monthly FAAC allocation for the preceding twelve months is N3.295bn, while our current monthly debt service is N467.12mn. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

Also, the monthly debt service forecast of the FGN Budget Support Facility of N14.169bn with a moratorium of 18months and World Bank Loan of $350mn with a moratorium of 10years are N191.767mn and N98.843mn respectively. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

If the State is to repay all loans today, the total debt service would be N757.735mn representing 23% of total deductions as a percentage of total allocations. This is less than the threshold for sub-national borrowing which is capped at 40%. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

In view of this, Kaduna State is within the sustainable debt level.
What the Senate displayed was elevating the ego of some of its members above the demands of public policy. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

As the three senators from Kaduna State spoke, it was apparent that they have put their personal frustrations above the right of the people of Kaduna State to decent investment in human capital development through good schools & hospitals, and better quality of life #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018

Kaduna State Government is grateful to the House of Representatives for its kind endorsement of the request. We march on with the task of governing the state, and we shall continue to enjoy the support of our development partners. #KadunaWBLoan

— Governor Kaduna (@GovKaduna) March 30, 2018