The federal government, FG, has released a State by State breakdown of the first tranche of Paris Club refunds paid to date.
Aa statement by Salisu Na’inna Dambatta, Director (Information), Federal Ministry of Finance on Friday said these payments which totaled N516.38bn were made to the 36 States plus FCT upon the approval of Present Muhammadu Buhari on November 21st 2016.
He said it is 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 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 disclosed that 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.
See the table below as released by the Federal Ministry of Finance:
|REFUND OF OVER-DEDUCTIONS ON PARIS CLUB LOANS ON THE ACCOUNTS OF STATE AND LOCAL GOVERNMENTS (1995-2002)
TOTAL AMOUNT PAID IN NGN
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