Katsina ex-Gov Shema advised Gov Masari against taking loans, bonds
Katsina State former Governor, Barrister Ibrahim Shehu Shema has strongly advised the current Governor of the state, Rt Hon Aminu Bello Masari against taking up loans and or rising bonds, stressing that it may cripple the state.
Shema offered this advice in an interview with Channels TV in June, 2015, shortly after handing over the mantle of leadership to the Governor Masari’s APC-led administration.
“I have nothing against borrowing, people can borrow if they want to borrow, but I did not borrow in Katsina State for two fundamental reasons.
“One; the interest rate is throat-cutting, there is no way a state with dwindling economy can borrow and be able to pay (the interest) and if the interest buildup become so large, the economy of the state will go under.
“Two; within our meager resources, we felt we can manage it and achieve the kinds of things we did,” he said.
“My recommendation to the incoming administration (Gov Masari’s government), is to be able to sustain this feet of not borrowing but they felt they cannot, then, that is their decision entirely but my advice for them not venture into borrowing. Borrowing for a young state like Katsina with revenue income that is essentially (from) federation account and Internally Generated Revenue (IGR) that is not upto N1bn (monthly) will not be helpful to the management of the state.