Kwankwasiyya questions proposed N55bn loan for Kano LGAs
The Kwankwasiyya Movement has expressed serious concerns regarding a proposal that could impose a financial burden of approximately 1.3 billion Naira on each local council to establish Computer-Based Testing (CBT) centers, support an unspecified project, and fund an empowerment program. In a statement released on Sunday and signed by spokesperson Dr. Habibu Sale Mohammed, the movement urged the state government to clarify the rationale behind placing such significant financial obligations on local councils, particularly in light of the fact that these projects are reportedly to be managed at the state level.
While the movement noted its unease about the timing of the proposal, coinciding with the upcoming electoral cycle, it did not claim that the loan was intended to finance election-related activities. Instead, it called on the government to implement safeguards ensuring that any funds derived from the loans would be dedicated exclusively to approved public projects.
“The necessity for public borrowing should stem from tangible development needs, not from electoral motivations or political expediency,” the movement stated.
The Kwankwasiyya Movement has also requested a comprehensive breakdown of the proposed loan, indicating that an estimated 632.57 million Naira per council would be allocated for the CBT centers, 500 million Naira for an unspecified project, and roughly 117.41 million Naira for the empowerment program. The movement emphasized the need for verification of these figures with original documents and urged the government to provide information on the locations of the proposed CBT centers, the reasoning behind their cost estimates, and details regarding the project associated with the 500 million Naira allocation.
In addition, the group sought clarity on the number of beneficiaries expected from the empowerment program and the criteria for their selection. It stressed the importance for local government chairmen to fully comprehend the legal and financial ramifications of accepting such obligations.
“We request a complete account of the funds contributed or allocated by the 44 local government councils for the joint empowerment program, specifically the monthly women’s initiative. The government should reveal each council’s contributions, the total funds received, the payments made to beneficiaries, and any administrative costs incurred. Furthermore, it should explain why the program reportedly lasted less than 10 months despite initial expectations for its continuation,” the statement read.
The movement demanded that the government provide an account of previous funds before requiring councils to incur new debts for another empowerment initiative. Additionally, it called on the Kano State House of Assembly to disclose whether it had approved the proposed loan arrangement and to publish any relevant resolutions and supporting documents.
The group urged lawmakers to carefully examine the loan’s repayment terms, the costs of the proposed projects, and the legal framework before any commitments are made. It also appealed to the commercial bank contemplating the loan to conduct thorough due diligence on the borrowing arrangements, assessing each council’s authority, repayment capacity, and the intended use of the funds, ensuring compliance with applicable laws and measures to prevent the misuse of public money.
The movement underscored that any future administration would be responsible for reviewing inherited financial commitments and seeking appropriate actions if credible evidence of illegality or irregularities surfaced.
On the matter of local government autonomy, the group referenced a Supreme Court judgment from July 2024 regarding financial independence for local councils, advocating for an independent legal evaluation of the proposed arrangement. It asserted that the legality of the loan would hinge on its structure, including who would be borrowing the funds, who would control the disbursement, what revenues would serve as collateral, and what approvals would be necessary.
The Kwankwasiyya Movement cautioned that repayment obligations should not hinder the councils’ ability to deliver essential services to residents. It called on the state government to clarify the purpose of the proposed loan, the anticipated benefits, management of the funds, and the approach to repayment.
