KADUNA State Governor Uba Sani has said his government could not pay salaries due to the debt he inherited from his predecessors.
He stated this on Saturday, March 30, claiming he inherited about $587 million from his predecessor.
Sani also said N85 billion and 115 contract liabilities were inherited from the previous administration, making it difficult to pay workers their salaries.
He, however, noted that his administration was working to find a way around the situation.
“Despite the huge debt burden of $587m, N85bn, and 115 contractual liabilities sadly inherited from the previous administration, we remain resolute in steering Kaduna State towards progress and sustainable development. We have conducted a thorough assessment of our situation and are sharpening our focus accordingly.
“It gladdened my heart to inform you that despite the huge inherited debt on the state to date, we have not borrowed a single kobo,” Sani said.
He also said the devaluation of the naira was making it more difficult to pay back the debt.
He noted that a huge chunk of the federal allocation was being channelled towards debt servicing, leaving the state with inadequate funds to pay salaries.
In 2021, former governor of the state Nasir El-Rufai disengaged about 4,000 workers, saying he was not elected just to pay salaries.
El-Rufai said the high wage bill overstretched the state’s finances, and federal allocations were not being increased.
“In the last six months, personnel costs have accounted for between 84.97 per cent and 96.63 per cent of FAAC transfers received by the Kaduna State government. In March 2021, Kaduna State had only N321 million left after settling personnel costs,” El-Rufai had said.
Ijeoma Opara is a journalist with The ICIR. Reach her via vopara@icirnigeria.org or @ije_le on Twitter.