FG releases details of N243.8bn Paris club refunds to states

by Onyinye Nwachukwu, Abuja

July 18, 2017 | 10:35 pm
  |     |     |   Start Conversation
Kemi Adeosun

The finance ministry on Tuesday released details of another tranche of Paris Club refunds to the 36 states of the Federation and Federal Capital Territory (FCT) totaling N243, 795,465,195.20.

This is another tranche of Paris Club refund of over-deductions on Paris Club, London Club Loans and Multilateral debts on the accounts of States and Local Governments (1995-2002).

The ministry said Tuesday night that the money was released following approval of the President on May 4, 2017, in partial settlement of long-standing claims by State Governments relating to over-deductions from their Federation Account Allocation Committee (FAAC) allocation for external debt service arising between 1995 and 2002.

State by State breakdown showed that Abia received N 5 .715 b; Adamawa N 6.114 b; Akwa-Ibom N10 b; Anambra N6,121 b; Bauchi N6. 877 b; Bayelsa N10 b; Benue; N6.854 b; Borno N7.340 b; Cross River N6. 075 b; Delta N10 b; Ebonyi N4. 508 b; Edo N6. 091 b; Ekit N4,772,836 b.

Others are: Enugu N5. 361 b; Gombe N4. 472 b; Imo N 7 b; Jigawa N7. 107 b ; Kaduna N7. 721 b; Kano N10 b Kastina N8. 202 b Kebbi N5,977,499,491.45; Kogi N 6,027,727,595.80; Kwara N5,120,644,326.57; Lago N8,371,938,133.11
Nassarawa N4,551,049,171.1 ; Niger N7,210,793,154.95; Ogun; N5,739,374,694.4 ; Ondo N7,003,648,314.28; Osun; N6,314,106,340.62
Oyo N7,901,609,864.25; Plateau; N5,644,079,055.41; Rivers; N10 b ; Sokoto ; N6,441,128,546.76; Taraba; N5,612,014,491.52; Yobe N5,413,103,116.59 Zanfara N5,442,385,594.49; ans FCT, N684,867,500.04
The Minister of Finance, Kemi Adeosun explained that these debt service deductions were in respect of the Paris Club, London Club and Multilateral debts of the FG and States. While Nigeria reached a final agreement for debt relief with the Paris Club in October 2005, some States had already been overcharged.

The funds were released to State Governments as part of the wider efforts to stimulate the economy and were specifically designed to support states in meeting salary and other obligations, thereby alleviating the challenges faced by workers.

In a statement signed by its Salisu Dambatta, the finance ministry said the releases were conditional upon a minimum of 75 per cent being applied to the payment of workers’ salaries and pensions for States that owe salaries and pension.

Meanwhile, the finance ministry said it’s reviewing the impact of these releases on the level of arrears owed by State Governments.

“A detailed report is being compiled for presentation to the Acting President, Professor Yemi Osinbajo, as part of the process for approval for the release of any subsequent tranches,” Dambatta said in the statement.


Onyinye Nwachukwu, Abuja

by Onyinye Nwachukwu, Abuja

July 18, 2017 | 10:35 pm
12893  |   93   |   0  |   Start Conversation

Big Read |  


Making the case for sustainability

The debate about the role of business in society has been ongoing since the 1960s. Over the years,literature and research...