Kano CSOs Lament Economic Hardship, Rising Debt Profile

Ahmad Sorondinki in Kano.

A coalition of civil society organisations in Kano State has lamented the current economic hardship and the rising debt profile of states, which it said has not only undermined the country’s financial stability but also jeopardised the provision of essential services to the Nigerians.

Addressing a press conference in Kano, the state Executive Director of  Democratic Action Group (DAG) Dr. Mustapha Yahaya, said the high debt burden hampers the government’s efforts to invest in critical sectors such as education, and healthcare among others.

He said according to the desk review of the sub-national debts of northwest Nigeria conducted by Aid Foundation, CISLAC, and Christian Aid, the total debt of the North-west zone stands at N1,221,147,361,723.62.

He said Kano State has the second highest debt at 16.41% which represents N200,416,771,774.70 in contribution to the zonal total.

He said that in recent years, the debt profile of Kano State had witnessed a concerning surge, raising apprehensions about its implications for the state’s development trajectory and the well-being of its citizens.

He maintained that the desk review of the sub-national debts of northwest Nigeria conducted by Aid Foundation, CISLAC, and Christian Aid, showed that Kano has the second highest total foreign debt for the Northwest zone of the country.

He pointed out that the state has 11.88% debt which represents Ν78,054,829,156.67.

“Kano State is on top with the highest domestic debts for the northwest zone which stand at 21.69% or N122,361,942,618.03 of the total.”

Yahaya explained that the implications of the state’s mounting debt are manifold and that if not properly addressed, they will ” Hamper the state government’s capacity to invest in key sectors such as education, healthcare, infrastructure, and social welfare programs. This stagnation in development initiatives perpetuates socio-economic disparities and inhibits progress.”

According to him, “The servicing of escalating debt consumes a substantial portion of the state’s revenue, hence diverting resources away from pressing needs and essential services. This financial strain perpetuates a cycle of dependency on borrowed funds, exacerbating the state’s fiscal vulnerability, ” he said.

The NGOs urged the Kano State Government and the state House of Assembly to implement robust mechanisms for monitoring and managing the state’s debt, ensuring transparency, accountability, and adherence to fiscal responsibility principles.

“This includes comprehensive disclosure of borrowing activities and regular updates on debt servicing obligations. For this, there should be strict compliance with Sections 17, 18, and, 23(1) of the Kano State Public Debt Management Office Law 2021.

Amongst the NGOs in attendance were the Democratic Action Group (DAG), Tax Justice and Governance Platform (TJGP), Civil Society Legislative Advocacy Centre (CISLAC), ActionAid Nigeria, Christian Aid, Centre for Democracy and Development (CDD), International Budget Partnership (IBP), among others.