Sidebar

Exclusive Reports

29
Fri, Mar

Top News
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

The Ministry of Finance has released details of the N516.38billion Paris Club refund paid to the 36 States and FCT following approval by President Muhammadu Buhari on November, 2016.

The disbursements formed part of the first tranche of the refunds shared to the States.

According to a statement by Salisu Danbatta, Director of Information in the Ministry, the payments were in partial settlement of longstanding 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.

The 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 government had initially turned down repeated requests to release the payment details.

“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,” the statement said.

The releases were conditional upon a minimum of 50 per cent being applied to the payment of workers’ salaries and pensions.

In the breakdown of the payments, Rivers State topped the list with 34,925,785,322.06, followed by Delta and Akwa Ibom States with 27,606,963,362.46 and 25,981,255,165.12, respectively.

At the bottom of payments, asides FCT with 1,369,735,000.09, were Nasarawa State 9,102,098,342.24, Ebonyi State 9,016,166,759.96 and Gombe State 8,945,755,396.38.

Meanwhile, amidst complaints by residents across the States over possible misappropriation of the funds, the Federal Ministry of Finance said it was reviewing the impact of these releases on the level of arrears owed by State Governments.

 

BLOG COMMENTS POWERED BY DISQUS