Federal Government has released the breakdown of the first tranche of N516.38bn reimbursement made to the 36 states ofbuh the federation and the Federal Capital Territory from the Paris Club debt refund.
Based on the schedule of reimbursement which was released by the Federal Ministry of Finance on Friday in Abuja, five states got the highest amount of refund from the Federal Government
The states are:
Akwa Ibom N25.98bn,
Analysis of the payment schedule showed that the above 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.
This was followed by
Sokoto N12.88bn and
Cross River N12.15bn,
Yobe state got N10.82bn,
Oyo N13.31bn while
Kwara got N10.24bn.
Taraba N9.32bn and
Federal Capital Territory N1.36bn.
The 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.
This is in partial settlement of long standing claims by state governments relating to over-deductions from their Federation Account Allocation Committee 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 Federal government and states.
While Nigeria reached a final agreement for debt relief with the Paris Club in October 2005, some states according to the statement had already been overcharged.
It reads 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, Professor Yemi Osinbajo, as part of the process for approval for the release of any subsequent tranches.”