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Tuesday, December 24, 2024

States Receive Another Tranche Of Paris Club Refund

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States have been paid another tranche of the Paris Club refund.

Ekiti, which got N9.5billion in the first tranche, has received another N4.772billion; Abia got N5.715billion. The state received N11.4billion in the first tranche.

Governor Ayo Fayose’s Media Adviser, Lere Olayinka, confirmed Ekiti’s receipt of the second tranche while Commisioner for Finance, Obinna Oriaku, confirmed that of Abia.

However, the total amount paid out by the Ministry of Finance, has not been confirmed yet. Top officials of the ministry are waiting for clearance from Minister of Finance, Kemi Adeosun, before giving out that information.

A total of N516 billion was released to the 36 states and the Federal Capital Territory (FCT) in the first tranche.

The Ministry of Finance spokesman, Salisu Dambatta, in a statement after the release of the cash, said: “The debt service deductions are in respect of the Paris Club, London Club and Multilateral debts of the Federal Government and states.

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

“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 per cent being applied to the payment of workers’ salaries and pensions.”

 

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