DAG, Tax Justice urge urgent action on Kano State’s rising debt crisis

The Dispute Resolution and Development Initiative (formerly known as Democratic Action Group DAG), coordinating the Tax Justice and Governance Platform (TJGP) in Kano, have urged the Kano State Government and the House of Assembly to take urgent action in addressing the state’s rising debt crisis.

Tax Justice also urged the state to implement robust mechanisms for monitoring and managing the state’s debt.

Alhaji Mustapha Muhammad, the Executive Director of the Dispute Resolution and Development Initiative (DRDI), made the call on Friday during a press briefing held in Kano.

He expressed concern about the alarming surge in the debt profile of Kano State.

“Kano State’s debt profile has reached concerning levels,” he said.

According to him, Kano State has the second highest debt in the Northwest zone.

“In the recent review of the subnational debts of Northwest Nigeria conducted by Aid foundation, CISLAC and Christian Aid. The total debt of the Northwest zone is N1,221,147,361,723.62 with Kano State having the second highest debt at 16.41% which represents N200,416,771,774.70 in contribution to the zonal total,” he said.

He also added that the state in terms of foreign debt ranks the second highest in the Northwest zone with 11.88% which represents N78,054,829,156.67 in total contribution to the zonal total.

Alhaji Muhammad said that if these debts are left unchecked, they will pose a serious challenge to the state’s ability to invest in key sectors such as education, healthcare, and infrastructure.

The Director recommends transparent disclosure of borrowing activities, prioritizing investments, and strict adherence to debt management laws, which stipulate that the estimated aggregate revenue plus deficit should not exceed 5% of the state’s estimated GDP for each fiscal year.

Additionally, he advocates for diversification of revenue streams and exploring options for debt restructuring to alleviate financial pressures.

“It is imperative that legislative responses are mobilized to strengthen debt management and enhance revenue mobilization,” he added.

Furthermore, the DAG director emphasized the need for judicious allocation of resources to prioritize investment in critical sectors such as education, healthcare, and infrastructure.

“The government must focus on projects that yield long-term socio-economic benefits and enhance the overall well-being of citizens.

“The government should also establish a committee tasked with identifying neglected infrastructure projects and giving priority to their completion.

“These proactive steps will conserve resources and enable the reallocation of funds to other essential sectors,” he said.

The organization reiterated its commitment to contributing to inclusive nation-building opportunities that protect the interests of Kano citizens and all other Nigerians.

The organization further urged the government to give careful consideration to their recommendations as they strive for fiscal stability and economic prosperity in Kano State.

The press briefing had in attendance representatives of the Society of Women in Taxation (SWIT), the Women Group MADAFA association, a representative from a Civil Society Organization (CSO), a representative from the Association of Nigerian Women Business Network (ANWBN), amongst other stakeholders.