The federal government has released to the 36 states and Abuja the sum of N243.79 billion as the second tranche of the Paris Club Refund.
This was disclosed in a statement yesterday by the Director of Information in the Federal Ministry of Finance, Mr. Salisu Dambatta. According to Dambatta, the release of the fund was approved by President Muhammadu Buhari on May 4.
The money is a combination of over-deductions from Paris Club, London Club loans and multilateral debts on the accounts of states and local governments from 1995 to 2002. With the release of the second tranche of N243.79bn, the amount so far disbursed to states as refund under the Paris Club loan is now N760.17bn.
Breakdown of receipt of the states is as follows: Lagos 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.
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
Plateau N5.64bn; Sokoto N6.44bn; Taraba N5.61bn; Yobe N5.41bn; Zamfara N5.44bn; and Federal Capital Territory,Abuja N684.86m.
5 states namely;Akwa Ibom, Bayelsa, Delta, Kano, and Rivers received the largest chunk of N10bn each. These 5 states also received the largest chunk totally N135.09bn when the first tranche of N516.38bn was released in December.
Corruption allegations and mismanagement trailed the release of the first tranche N516.38bn as most of the governors were accused of squandering their receipts. 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.
The funds were released to state governments as part of wider efforts to stimulate the economy, even as they were specifically designed to support states in meeting salary and other obligations, thereby alleviating the challenges faced by workers.
