The federal government on Friday released a breakdown of the first tranche of Paris Club refunds paid to states to date.
Totalling N516.38 billion, the payments were made to the 36 states and the Federal Capital Territory after the approval of President Muhammadu Buhari on November 21 2016.
A statement by the spokesman for the ministry, Salisu Danbatta, said the funds were released to stimulate the economy and support states to offset their salaries and pension liabilities.
“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,” he said.
The payments were in partial settlement of longstanding claims by state governments relating to over-deductions from their Federation Account Allocation Committee, FAAC, allocation for external debt service arising between 1995 and 2002.
The debt service deductions are 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.
Read breakdown below…
REFUND OF OVERDEDUCTIONS ON PARIS CLUB LOANS ON THE ACCOUNTS OF STATE AND LOCAL GOVERNMENTS (1995-2002)
|S/N||STATE||TOTAL AMOUNT PAID IN NGN|