The Federal Government has released N243.79bn as the second tranche of the Paris Club Refund to the 36 state governments and the Federal Capital Terri
The Federal Government has released N243.79bn as the second tranche of the Paris Club Refund to the 36 state governments and the Federal Capital Territory and five states were lucky enough to get the lion share. With the fresh release of the second tranche, the amount so far disbursed to states as refund under the Paris Club loan now stands at N760.17bn.
The approval for the payments was done on May 4 by President Muhammadu Buhari in partial settlement of long-standing claims by state governments relating to over-deduction from their allocations from the Federation Account for external debts service arising between 1995 and 2002. A breakdown of the N243.79bn showed that five states received the highest amount of N10bn each.
The states are Akwa Ibom, Bayelsa, Delta, Kano, and Rivers. The total amount of N50bn received by these five states represents 20.5 per cent of the entire amount released under the second tranche. Interestingly, these five states also got the highest chunk of N135.09bn when the first tranche of N516.38bn was released by the government in December last year. Further analysis of the payment schedule showed that Lagos received N8.37bn; Katsina, N8.2bn; Oyo, N7.9bn; Kaduna, N7.72bn; Borno, N7.34bn; and Niger N7.21bn.
Abia got N5.71bn, Adamawa, N6.11bn; Anambra, N6.12bn; Bauchi, N6.87bn; Benue, N6.85bn; Cross River, N6.07bn; Ebonyi, N4.51bn; Edo N6.09bn; and Ekiti N4.77bn. In the same vein, the disbursement schedule showed that Enugu received N5.36bn; Gombe, N4.47bn; Imo, N7bn; Jigawa, N7.1bn; Kebbi, N5.97bn; Kogi, N6.02bn; Kwara N5.12bn; Nasarawa, N4.55bn; Ogun , N5.73bn; Ondo, N7bn; and Osun, N6.31bn. Others are Plateau, N5.64bn; Sokoto, N6.44bn; Taraba, N5.61bn; Yobe N5.41bn; Zamfara, N5.44bn; and Federal Capital Territory N684.86m.
The funds were released to the 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 ministry said the releases were predicated on the condition that a minimum of 75 per cent of the money would be used for the payment of workers’ salaries and pensions.
Most of the state governments have acknowledged receipt of their own tranche of the refund; from Osun to Ogun and Benue States.
Punch
