The senator representing Kaduna Central senatorial district in the National Assembly, Sen. Shehu Sani has urged banks and lending houses to conduct due diligence before lending to states.
Sani, who is the Chairman of the Senate Committee on Local and Foreign Debts, made this known in a tweet via his verified Twitter handle on Thursday.
The senator urged the lenders to verify the actual debt status of states with the Debt Management Office (DMO) and demand approval from the state Houses of Assembly before lending money to them.
He said, “As Chair of the Senate Committee on Debts, I wish to caution commercial banks and Lending Houses against lending money to states without verifying their actual debt status from the DMO and without a documented borrowing approval from their House of Assemblies.”