Zamfara State has denied securing a ₦34 billion loan, calling reports a misreading of old debts.
Officials clarified the funds were interest payments on loans inherited from previous administrations.
The Zamfara State Government has firmly denied reports that Governor Dauda Lawal secured a ₦34 billion loan, dismissing the claim as misleading and rooted in a misinterpretation of financial records. This statement was issued on Tuesday by the governor’s spokesperson, Sulaiman Bala Idris, who accused Sahara Reporters of spreading false information.
The media platform had earlier reported that the Lawal administration had obtained a fresh ₦34 billion loan, sparking public concern and criticism. However, the state government clarified that no such loan had been secured since Governor Lawal assumed office.
According to Idris, the ₦34 billion cited in the report refers not to new borrowing but to interest payments on pre-existing debts accumulated by previous administrations. He noted that these payments were part of the provisions made in the 2023 budget, which was passed during the tenure of former Governor Bello Matawalle, now the Minister of State for Defense.
“Governor Lawal has not accessed any local or foreign loan facilities since taking office,” the statement emphasized. “The ₦34 billion in question relates solely to debt servicing, specifically interest payments tied to loans inherited from past governments.”
The government provided further clarity, stating that the 2023 budget allocated ₦53.2 billion for debt servicing, which includes both interest and principal repayments. Out of this amount, ₦34 billion was used specifically to cover interest payments, an action the administration described as evidence of its commitment to financial responsibility rather than an indication of fresh indebtedness.
Idris also questioned the motivations behind the report, pointing out that while the current administration has been transparent in managing the state’s finances, there has been little focus on how previous governments handled the funds they borrowed.
“The real question that should be asked is how the loans taken by the Matawalle-led administration were spent,” he said. “There’s very little visible development to justify the level of borrowing during that period.”
He challenged Sahara Reporters and other critics to present any documented evidence that the Lawal administration has applied for or obtained new loans since assuming office. Emphasizing the administration’s financial stance, Idris reiterated that Governor Lawal remains committed to reducing Zamfara’s debt load and enhancing accountability in public spending.
“Governor Dauda Lawal’s priority is to clean up the financial mess he inherited and ensure that Zamfara State operates on a foundation of fiscal integrity,” the spokesperson added.
During a recent media engagement, Governor Lawal also addressed the issue of public debt and fiscal discipline. He assured citizens that his administration would focus on growing internally generated revenue (IGR) and implementing strict financial controls, rather than depending on loans to drive the state’s development agenda.
“We are taking steps to improve revenue generation and cut unnecessary expenses. Borrowing is not our first option; rather, we believe in building a strong economy based on transparency, sustainability, and long-term planning,” the governor had said.
The state government’s response comes amid increasing scrutiny of sub-national borrowing practices in Nigeria. Observers have expressed concern over the lack of transparency in loan acquisition and the mismanagement of funds by some state administrations.
As Zamfara continues to grapple with its inherited debt obligations, the Lawal administration maintains that its approach is rooted in accountability and financial prudence, aimed at restoring public trust and delivering tangible development outcomes without increasing the state’s debt profile.
