Amid growing calls for accountability, FG releases second tranche of Paris Club refund to states

The Federal Government on Tuesday released details of payments to the 36 states as refund of “over-deductions on Paris Club, London Club Loans and Multilateral debts on the accounts of States and Local Governments (1995-2002).”

The Minister of Finance, Kemi Adeosun, said approval for the release of this second tranche of the fund totaling N243.8 billion was given by Acting President Yemi Osinbajo on May 4. Following that, the fund was released to the 36 states and Abuja.

Breakdown of disbursements as released by the Ministry of Finance showed that Akwa Ibom, Bayelsa, Delta, Kano and Rivers states received the largest sum of N10 billion each.

Data for other states are as follows, Abia- N5 .715b; Adamawa- N6.114b; Anambra- N6,121b; Bauchi- N6.877b; Benue- N6.854b; Borno- N7.340b; Cross River- N6.075b; Ebonyi- N4. 508b; Edo- N6.091b; Ekiti- N4,772,836b.

Others are: Enugu- N5.361b; Gombe- N4. 472b; Imo- N7b; Jigawa- N7.107b; Kaduna- N7.721b; Kastina- N8.202b; Kebbi- N5,977,499,491.45; Kogi- N6,027,727,595.80; Kwara- N5,120,644,326.57; Lagos- 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; Sokoto- N6,441,128,546.76; Taraba- N5,612,014,491.52; Yobe- N5,413,103,116.59; Zamfara- N5,442,385,594.49, and the FCT- N684,867,500.04.

In citing a primary condition for the release, Salisu Dambatta, a finance ministry spokesperson said in the statement detailing the payments that, “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”.

Read also: Adeosun backtracks, says govt will continue borrowing

The finance ministry stated that it was reviewing the impact of these releases based on the level of arrears owed by the various state governments.

Although the states had earlier promised to use the bulk of the money to settle debts owed workers and pensioners, it remains to be seen whether or not this new promise will be fulfilled, since many workers who had been owed for months got little relief after the first tranche.

Many worry that the finance ministry has not put in an effective monitoring system to check against misuse of the funds and ensure strict compliance with the disbursement guidelines.

More so, the allegations that followed the release of the first tranche highlighted by the alleged diversion of the fund towards the construction of a private hotel by the Chairman of the Nigeria Governors Forum and Governor of Zamfara State, Abdul’aziz Yari, create a cloud of mistrust over the entire disbursement.

 

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