The Kwankwasiyya Movement has challenged the Kano State Government to explain the rationale for a proposed N55 billion loan involving the state’s 44 local government councils, demanding full disclosure of the projects, repayment arrangements and legal basis of the borrowing.
The movement expressed concern that each council could be required to assume a debt obligation of about N1.3 billion for projects reportedly covering the establishment of Computer-Based Testing (CBT) centres, an unspecified development project and an empowerment programme.
Habibu Sale Mohammed, spokesperson for the Kwankwasiyya Movement, made the demands in a statement issued on October 18, arguing that the proposed arrangement raises questions about local government financial autonomy, public accountability and the potential burden on councils’ resources.
According to the movement, the reported breakdown of the proposed loan includes N632.57 million per council for a CBT centre, N500 million for an unspecified project and N117.41 million for an empowerment programme. It called for the figures to be verified against the original loan documents and for the government to publish a detailed account of the proposed expenditure.
The movement questioned why local government councils should be required to undertake substantial borrowing for projects reportedly to be administered by the state government, rather than independently determining their development priorities.
It acknowledged the importance of educational infrastructure and economic empowerment but maintained that such initiatives should be implemented through transparent, lawful and financially sustainable arrangements.
The group also questioned the timing of the proposed borrowing, particularly with the 2027 general elections approaching, and urged the government to demonstrate why the projects could not be financed through existing budgetary provisions and available public revenue.
While clarifying that it was not alleging that the loan was intended to finance election-related activities, the movement called for safeguards to ensure that the proceeds would be used exclusively for approved public projects.
It urged the government to disclose its revenue position, existing financial commitments and the justification for imposing additional debt obligations on the councils.
The movement also demanded specific details about the proposed CBT centres, including their locations, feasibility studies and cost assessments. It further asked the government to identify the project allocated N500 million per council and explain the number of beneficiaries expected to benefit from the empowerment programme.
It maintained that local government chairmen should not commit their councils to substantial financial obligations without understanding the legal implications, the terms of repayment and the benefits expected from the projects.
Beyond the proposed loan, the movement called on the state government to account for funds reportedly contributed or released by local government councils under an earlier joint empowerment programme, particularly the monthly women’s empowerment initiative.
It asked the government to disclose the amount contributed by each council, the total funds received, the sums disbursed to beneficiaries, administrative expenses and any unspent balances.
The group also sought an explanation for reports that the programme operated for fewer than 10 months, despite expectations surrounding its continuation.
According to the movement, the government should account for the previous programme before asking councils to incur fresh debts for another empowerment initiative.
The Kwankwasiyya Movement called on the Kano State House of Assembly to clarify whether it had formally approved or authorised the proposed borrowing arrangement and, if so, publish the relevant legislative resolution and supporting documents.
It said the lawmakers should scrutinise the legal basis of the transaction, project costs, repayment obligations and any proposed security arrangements to ensure that the interests of the councils and their residents were protected.
The movement also appealed to the commercial bank reportedly considering the facility to conduct thorough due diligence on the borrowing councils’ authority, repayment capacity, the legality of any revenue pledged as security and the intended use of the funds.
It warned that financial transactions involving public institutions carry legal, financial and reputational responsibilities and should be structured to withstand independent scrutiny, regardless of changes in government.
On local government autonomy, the movement cited the Supreme Court’s July 2024 judgment affirming local government financial autonomy, arguing that the proposed arrangement requires an independent legal assessment to establish whether it complies with the Constitution and applicable laws.
It stressed that the legality of the proposal would depend on its actual structure, including the identity of the borrowers, control of the loan proceeds, repayment arrangements and the approvals required.
The movement cautioned that local government chairmen should not become mere signatories to loan agreements for projects whose proceeds they do not control, particularly where repayment could affect funding for essential services.
It urged the state government to provide clear answers on the purpose of the proposed borrowing, the expected benefits, who would control the funds and how the debts would be repaid.
The movement said protecting local government finances and ensuring accountability for public funds were essential to preventing avoidable financial burdens on residents of Kano State.
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