Saturday, June 10, 2017 12:04 am
The Federal Ministry of Finance on Friday released details of payments to the 36 states of the federation and the federal capital territory as refunds of Paris Club debt repayments between 1995 and 2002.
In a State by State breakdown of the first tranche of Paris Club refunds paid to date released in a statement signed by Salisu Na’inna Dambatta, Director (Information), Federal Ministry of Finance, Abuja, payments totaling N516.38billion have been made so far to the 36 States plus FCT upon the approval of Present Muhammadu Buhari.
The refunds, he added, were 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.
These debt service deductions are in respect of the Paris Club, London Club and Multilateral debts of the FG and States.
Nigeria reached a final agreement for debt relief with the Paris Club in October 2005, but some States had already been overcharged, hence the refund.
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 releases were conditional upon a minimum of 50 per cent being applied to the payment of workers’ salaries and pensions. The Federal Ministry of Finance is reviewing the impact of these releases on the level of arrears owed by State Governments.
Dambatta said 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.
Figures released by the Ministry revealed that Rivers State has received the highest amount with N34.99 billion followed by Delta State’s N27.60 billion Naira and Akwa Ibom with N25.98 billion Naira.
See details of payment to each state and the FCT below as released by the Federal Ministry of Finance: