Nigeria Releases Details Of How Paris Club Refund Was Shared Among States
The Federal Government has released what seem to be the details of how it allocated the first tranche of N516.38bn reimbursement made to the 36 states of the federation and the Federal Capital Territory from the Paris Club debt refund.
Based on the schedule of reimbursement, which was released by the Ministry of Finance on Friday in Abuja, five states got the highest amounts of refund from the Federal Government.
The states are Rivers, which got N34.92bn; Delta, N27.6bn; Akwa Ibom, N25.98bn; Bayelsa, N24.89bn; and Kano, N21.7bn.
It is also understood through the analysis of the payment schedule that the five states got a total sum of N135.09bn, representing 26.1 per cent of the entire amount refunded by the Federal Government to all the states.
The rest are Adamawa, N10.25bn; Benue, N13.7bn; Ondo, N14.01bn; Taraba, N9.32bn; and the Federal Capital Territory, N1.36bn.
A statement signed by the Director of Information in the Finance ministry, Salisu Dambatta, said the payments were made upon the approval of President Muhammadu Buhari on November 21, 2016.
The statement read in part, “The funds were released to state government 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.
“A detailed report is being compiled for presentation to the Acting President, Prof. Yemi Osinbajo, as part of the process for approval for the release of any subsequent tranches.”