Kwankwasiyya questions proposed N55bn loan for Kano LGAs

The Kwankwasiyya Movement has questioned a reported plan by the Kano State Government to obtain a loan of about N55 billion through the state's 44 local government councils, demanding details of the proposed projects and how the debt would be repaid.

The movement expressed concern that each council could be required to take on a financial obligation of nearly N1.3 billion to fund the establishment of Computer-Based Testing (CBT) centres, an unspecified project and an empowerment programme.

In a statement on Sunday and signed by its spokesperson, Dr Habibu Sale Mohammed, the movement said the state government needed to explain why the local councils were expected to take on substantial debts for projects reportedly to be managed by the state.

It acknowledged the importance of educational infrastructure and empowerment initiatives but insisted that such projects must be carried out transparently and in line with the law.

“The government must explain why it needs to take this loan now and whether the proposed projects can be funded through existing budgetary provisions and available public revenue. It must also disclose its revenue position and existing financial commitments, and explain why the local government councils should take on additional debts,” the statement said.

Although it raised concerns about the timing of the proposal ahead of the next electoral cycle, the movement said it was not alleging that the loan was intended to finance an election.

However, it urged the government to establish safeguards to ensure that the funds would be used only for approved public projects.

“Public borrowing must be driven by demonstrable development needs, not electoral considerations or political convenience,” the statement said.

The Kwankwasiyya Movement also demanded a detailed breakdown of the proposed loan.

According to the statement, the figures available to it indicated that about N632.57 million per council could go towards a CBT centre, N500 million towards an unspecified project and approximately N117.41 million towards an empowerment programme.

It said the figures required verification against the original documents and called on the government to disclose the locations of the proposed CBT centres, the basis for their cost estimates and the details of the project allocated N500 million.

The movement also asked the government to state how many people would benefit from the empowerment programme and explain how beneficiaries would be selected.

It argued that local government chairmen should fully understand the legal and financial implications before accepting such obligations.

“We demand a full account of the funds contributed or released by the 44 local government councils for the joint empowerment programme, particularly the monthly women’s initiative. The government should disclose how much each council contributed, the total amount received, how much was paid to beneficiaries and the administrative expenses incurred. It should also explain why the programme reportedly lasted fewer than 10 months despite expectations that it would continue,” the statement said.

The movement said the government should account for the previous funds before asking councils to incur fresh debts for another empowerment initiative.

The movement urged the Kano State House of Assembly to state whether it had approved or authorised the proposed arrangement and, if so, publish the relevant resolution and supporting documents.

It said lawmakers should scrutinise the proposed loan's repayment terms, project costs and legal basis before any commitment was made.

The movement also appealed to the commercial bank reportedly considering the facility to conduct thorough checks on the borrowing arrangements, including the authority of each council, its ability to repay and the proposed use of the funds.

It said the bank should ensure that the transaction complied with applicable laws and included measures to prevent the diversion of public money.

The movement added that any future administration would have a responsibility to review inherited financial commitments and seek appropriate remedies where credible evidence of illegality or irregularity emerged.

On local government autonomy, the group referred to the Supreme Court's July 2024 judgment on financial independence for local councils, calling for an independent legal assessment of the proposed arrangement.

It said the legality of the loan would depend on its structure, including who would borrow the money, who would control the proceeds, what revenue would be used as security and which approvals were required.

The movement warned that repayment obligations should not undermine the councils' ability to provide essential services to residents.

It called on the state government to explain the purpose of the proposed loan, the expected benefits, who would control the money and how repayment would be handled.

Kwankwasiyya questions proposed N55bn loan for Kano LGAs