You Will Be Mortgage Kano Present And Future Generations If You Take The $1.8 Billion Loan, Kano Group Tells Ganduje

A group the Kano Economic Outlook Forum has hit out at the Kano State Governor, Abdullahi Ganduje  of his move take a loan of $1.8 billion loan from the China Development Bank for the financing of light rail project in the state as an attempt to mortgage the present and future generations of the state.

In statement signed by the Coordinator of the Group, Magaji Dahiru it said, the loan will take the state more than fifty years to repay the loan it the governor goes ahead to access it.

According to the group it said, even as it campaigned for the current government in Kano State during the 2015 elections, it is distancing itself from what it called an unfortunate, ill-informed, ill-conceived white-elephant project at a time of global economic crisis.

“The total loan facility is equivalent to N702 billion at the Central Bank of Nigeria (CBN) official exchange rate and N828billion at the current parallel market exchange rate of N460 to $1 USD. The proposed borrowing is also equivalent to a projected 4 fiscal year of Kano State government’s budgetary allocations.

“It is further disheartening and disappointing to note that with current exchange rate regime and the rising poverty level, Kano State government has concluded plans to mortgage the future of the present as well as the incoming generations by committing them into a perpetual debt at the expense of their education, health and other social safety net investments.

“The repayment period for the proposed loan could take more than 50 years,” part of the statement also read.