FG releases details of Paris club payment to states

The Federal Government has 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 latest payment is the second tranche of the refunds to the states. A total of N243.8 billion was released to the 36 states and Abuja in the second tranche. The Minister of Finance, Kemi Adeosun, said approval for the release of the fund was given by Acting President Yemi Osinbajo on May 4.

The details, released by the Ministry of Finance on Tuesday evening, showed that Akwa Ibom, Bayelsa, Delta, Kano and Rivers received the largest sum of N10 billion each. The states had earlier promised to use a large chunk of the money to settle debts owed workers and pensioners in their respective domains.

“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,” Salisu Dambatta, a finance ministry spokesperson said in the statement. The finance ministry said it was reviewing the impact of these releases on the level of arrears owed by the various state governments.