Paris Club Refund: Nigerians Want Governors Held to Account

Kwara, Bayelsa begin disbursement of funds

Many Nigerian have called on state governors to make judicious use of the second tranche of the Paris Club refund which has been released to the 36 states by the federal government.

The federal government on Tuesday released a state-by-state breakdown of N243.8 billion paid to state governments as the second tranche of the Paris Club refund of over-deductions on Paris Club, London Club Loans.

The Minister of Finance, Mrs. Kemi Adeosun, in a statement said that the debt service deductions were in respect of the Paris Club, London Club and Multilateral debts of the federal and states governments between 1995 and 2002.

According to the statement, the payment was approved on May 4 but the breakdown of payment was only released July 18 after series of agitations from Nigerians.

The News Agency of Nigeria (NAN) recalled that President Muhammadu Buhari had approved the release of N522.74 billion as first tranche of payment to states.

“This is in partial settlement of long-standing claims by states governments relating to over-deductions from Federation Accounts for external debt service arising between 1995 and 2002.

Most of those who reacted accused the federal government of not ensuring that the first release was utilised by the states before releasing another tranche.

Reaction on their social media pages on Twitter and Facebook, they called on the state governors to ensure that local governments got their own refunds adding that the money should be seen as an opportunity to pay arrears of unpaid salaries, allowances and pensions.

On Twitter, Nas wrote: “If FG had not published the Paris Club refund i know some state will pretend as if nothing came.”

Boason Omafaye of Channels Television wrote: “Are State Governments that have now received total of N767bn of FG Paris Club refunds, required to refund their various local governments as well?”

Oluseun Onigbinde of BudgIT wrote: “Low-key the second round of Paris Club bailout is going on. Money that was printed without any backing asset. Well done sir.”

Mayowa Adediran wrote: “N7,901,609,864.25 from Paris Club refunds. Yes sir, the seven hills of Ibadan re watching. Clear the backlogs. Oyo workers and pensioners need those payments @AAAjimobi Paris Club refunds.”

Israel Odita wrote: “Paris Club: Indeed this cash sharing system is not the way to build an economy. It is destitution as state policy. May we outgrow it soonest.”

Meanwhile, following the release of the Paris Club refund, Kwara State Governor, Alhaji Abdulfatah Ahmed, has approved the release of N1billion to local government councils in the state to offset part of their salary arrears.

The state Commissioner for Finance, Alhaji Demola Banu, who made the announcement in a statement in Ilorin yesterday, said the N1billion was part of the N5.1billion received by the state government as its share of the Paris Club refunds from the federal government.

Banu said the N5.1billion received by the state government was 12.5 per cent lower than the amount it was expecting from the federal government.

The commissioner said the balance of the refund would be utilised for projects and programmes designed to enhance the welfare and security of all citizens and residents of the state.

Also, the Bayelsa State Governor, Mr. Seriake Dickson yesterday confirmed the receipt of N10 billion from the federal government as its share of the second batch of the Paris/ London Club refund.

Dickson said that out of the money refunded , N919 million was meant for the eight local government councils, warning against misuse of the funds which was already being disbursed would not be condoned.

He also directed the State Commissioner for Finance, Maxwell Ebibai to immediately release the money to enable them carry out their obligations, especially to clear some outstanding salaries.

A statement by his Chief Press Secretary, Daniel Iworiso-Markson, said the governor made the confirmation at the Government House in Yenagoa when he hosted labour leaders in the state.