PARIS CLUB REFUND AND 2019 ELECTION
State governors across party lines are happy over an alleged payment, said to be the last tranche of Paris Club refund payment to Osun State government. They are happy because they will get their tranche at a crucial time of 2019 elections in their states. Some of the governors I spoke to were busy strategizing how they will legally utilize the money few days to 2019 elections in their states. In the history of Paris Club refund, it has been established norm of turn by turn. The first tranche was paid in batches after verification to selected states. There is nothing wrong if Osun State is selected first this time before other states because it used to be last when payment on Paris Club refund is made. The governors are happy that the payment has resumed and they will get this tranche few days to elections in their states. Some state governors confirmed to me that they have secretly set up committees on how best to utilize the money when they receive the last tranche.
The report in the Sun Newspaper of 8th September 2018 was a figment of imagination of the reporter. The reporter did not name any governor he spoke to nor confirm how it got the amount of money refunded to Osun State in the 21st century global world. The reporter is a member of opposition party that is promoting the interest of his party and confused how to cause division among the state governors in Nigeria across political divide. The governors are happy that Osun State got their tranche first and they are curiously waiting and planning for their tranche.
The state government was in December 2017 paid along other states by the federal government the third tranche of the refund. Paris Club refund is a partial settlement of long-standing claims by state governments relating to over-deductions from their Federation Account Allocation Committee (FAAC) payments for external debt service between 1995 and 2002.
Three tranches that had been released earlier to all the states, with the last released alongside the December 2017 federal allocations to enable most of the states owing months of staff salaries offset the backlog. At least six state governors from both the ruling APC and opposition PDP who spoke to me on the latest payment expressed joy over the payment made to Osun. They argued that the refund was made to empower the state government.
Governors are happy that fresh reprieve, as President Muhammadu Buhari approved payment of another Paris Club refunds to the states, to enable them meet their states obligations. President Buhari had earlier approved the release of billions as first tranche of payment to states, in 2016, in respect of what was said to be debt service deductions in respect of the Paris Club, London Club and Multilateral debts of the federal and state government from 1995 to 2002.