Isiyaku Ahmed
Kano State Government has unveiled plans for its 2026–2027 Medium-Term Debt Management Strategy (MTDS), with assurances that the state’s debt remains within sustainable limits and will be strategically managed to support growth and development.
Speaking at the opening of a two-day MTDS development workshop in Dutse, Jigawa State, over the weekend, the Director General of the Debt Management Office (DMO), Dr. Hamisu Sadi Ali, underscored the importance of prudent debt management to fiscal responsibility and sustainable economic growth.
He reminded participants that Section 16(1) of the Kano State Public Debt Management Law, 2021, requires the MTDS to be updated annually to reflect the realities of the global and domestic economy.
“Debt, by itself, is not a bad thing. It is a vital tool for financing development if managed prudently. What matters is sustainability, transparency, and responsibility,” Dr. Ali explained.
The DG stressed that rising debt figures should not always be misinterpreted as fresh borrowing, pointing instead to factors such as exchange rate shifts, changes in valuation, and debt restructuring.
Looking ahead, Dr. Ali said the state’s new debt strategy will focus on risk management, fiscal discipline, and economic resilience, while ensuring that every borrowing decision is tied to tangible development projects.
In a significant disclosure, he announced that Kano will soon issue a Sukuk bond, an Islamic-compliant financial instrument aimed at diversifying funding sources and channeling resources into critical infrastructure, including roads, schools, and healthcare facilities.
The DMO boss added that the Sukuk issuance will also help deepen Nigeria’s domestic capital market and attract ethical investors.
He concluded by describing the 2026–2027 MTDS as a “roadmap to fiscal resilience and sustainable development”, affirming the government’s commitment to responsible borrowing, transparency, and economic growth.
Stakeholders at the workshop, including financial experts, development partners, senior government officials, and civil society organizations, commended the state government’s proactive approach, describing it as a model that could inspire other states in Nigeria to strengthen debt sustainability.
