The Federal Government has released N243.79 billion as the second tranche of the Paris Club Refund to the 36 state governments and the Federal Capital Territory. With the fresh release of the second tranche of N243.79 billion, the amount so far disbursed to states as refund under the Paris Club loan is now N760.17 billion.
About “Paris Club” Payment
President Muhammadu Buhari on May 4, approved payment in partial settlement of long-standing claims by state governments relating to over-deduction from their allocations from the Federation Account for external debts service arising between 1995 and 2002.
The Minister of Finance, Mrs. 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, according to the statement, were released to the state governments as part of the wider efforts to stimulate the economy.
It added that the funds were specifically designed to support states in meeting salary and other obligations, thereby alleviating the challenges faced by workers.
How it should be used
The ministry said the releases were predicated on the condition that a minimum of 75 per cent of the money would be used for the payment of workers’ salaries and pensions.
Some examples;
- The Osun State Government, in a statement on Tuesday confirmed that it had received N6.314 billion as the second tranche of the refund. The state government, in the statement by the Director of Bureau of Communication and Strategy, Office of the Governor, Semiu Okanlawon, said the money was paid into the account of the state on Monday.
- The Benue State Government said it received N6.4billion, half of the N12 billion they were expecting. They said the money would be substantially utilised for salary payment after one or two processes would have been completed.
- The Ogun State Government also said it received N5.7billion as second tranche of the refund. Governor, Ibikunle Amosun, had approved N4.5 billion for the payment of cooperative deductions arrears to all categories of workers in the state. N3.4 billion had been disbursed for the payment of six months’ arrears of outstanding cooperative deductions to all categories of the workforce at the state level. Another N1.1billlion was disbursed for the payment of three months of outstanding cooperative deductions to workers at the local government level.
Highest share
A breakdown of the N243.79 billion Paris Club refund showed that Akwa Ibom, Bayelsa, Delta, Kano, and Rivers received the highest amount of N10billion each.
The total amount of N50billion received by these five states represents 20.5 per cent of the entire amount released under the second tranche.
These five states also got the highest chunk – N135.09billion when the first tranche of N516.38 billion was released by the government in December last year.
Who got what
- Lagos received N8.37billion;
- Katsina, N8.2 billion;
- Oyo, N7.9 billion;
- Kaduna, N7.72 billion;
- Borno, N7.34 billion
- Niger N7.21 billion.
- Abia, N5.71billion
- Adamawa, N6.11billion;
- Anambra, N6.12billion;
- Bauchi, N6.87billion;
- Benue, N6.85 billion;
- Cross River, N6.07 billion;
- Ebonyi, N4.51 billion;
- Edo N6.09 billion;
- Ekiti N4.77billion.
- Enugu, N5.36 billion;
- Gombe, N4.47 billion;
- Imo, N7 billion;
- Jigawa, N7.1 billion;
- Kebbi, N5.97 billion;
- Kogi, N6.02billion;
- Kwara N5.12 billion;
- Nasarawa, N4.55 billion;
- Ogun, N5.73 billion;
- Ondo, N7 billion;
- Osun, N6.31 billion
- Plateau, N5.64billion;
- Sokoto, N6.44billion;
- Taraba, N5.61billion;
- Yobe N5.41billion;
- Zamfara, N5.44billion;
- Federal Capital Territory N684.86million.
