Delta, Rivers, Akwa Ibom, now to pay salaries, as FG refunds N516. 4b over-deductions.

Rivers, Delta, Akwa Ibom get highest payment

The Federal Government has paid the sum of N516.38 billion to states as refunds on over-deductions for external debt service.

If the governors make good their promises to pay the backlog of workers’ salaries, then there would be an unprecedented economic relief throughout the country in the days ahead.

The governors had at their meeting in Abuja, last weekend, promised to pay the backlog of workers’ salaries from the second tranche of the refund.

Rivers State topped the list with N34.925 billion, followed by Delta and Akwa Ibom with N27.606 billion and N25.981 billion, respectively. Gombe received the least refund of N8. 945 billion.

The Federal Ministry of Finance, in a statement by its Director of Information, Mr. Salisu Na’Inna, in Abuja, yesterday, said the payment was in line with the approval of President Muhammadu Buhari on November 21, 2016, in partial settlement of long-standing claims by state governments.

There had been long-standing claims by state governments relating to over-deductions from their Federation Account allocations for external debt servicing between 1995 and 2002.

According to the ministry, the debt service deductions for which refunds have been made were in respect of the Paris Club, London Club and Multilateral debts of the FG and States.

While Nigeria reached a final agreement for debt relief with the Paris Club in October 2005, some states had already been overcharged.

It said, “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 percent 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.

State –by-State refunds were: Abia, 11,431,531,742.97; Adamawa, 10,257,434,321.63; Akwa Ibom, 25,981,255,165.12; Anambra, 12,243,313,404.68; Bauchi, 13,755,553,122.51; Bayelsa, 24,895,696,347.55; Benue, 13,709,343,498.51; Borno, 14,681,869,730.63; and Cross River , 12,150,687,893.85.

Others are: Delta, 27,606,963,362.46; Ebonyi, 9,016,166,759.96, Edo, 12,182,253,184.99; Ekiti, 9,545,673,294.17; Enugu, 10,723,578,819.32; Gombe, 8,945,755,396.38; Imo, 14,001,610,365.94; Jigawa, 14,215,333,413.52; Kaduna, 15,443,458,455.10; Kano, 21,740,390,362.48.

The rest are: Kastina, 16,404,261,819.71; KebbiI, 11,954,998,982.90; Kogi, 12,055,455,191.60; Kwara, 10,241,288,653.14; Lagos, 16,743,876,266.21; Nasarawa, 9,102,098,342.24; Niger, 14,421,586,309.89; Ogun, 11,478,749,388.92; Ondo, 14,007,296,628.57; Osun, 12,628,212,681.25; Oyo, 13,315,423,054.25; Plateau, 11,288,158,110.82; Rivers, 34,925,785,322.06; Sokoto, 12,882,257,093.52; Taraba, 9,326,607,975.00; Yobe, 10,826,206,233.18; Zamfara, 10,884,771,188.99; and FCT, 1,369,735,000.09.

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