The first tranche of Paris Club refunds to states has been released by the Federal government as reported by Premium Times.
Amount totalling N516.38 billion were made in payment to the 37 states and the Federal Capital Territory after it was endorsed by President Muhammadu Buhari on November 21, 2016.
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 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 statement said.
The releases were conditional upon a minimum of 50 per cent being applied to the payment of workers’ salaries and pensions.
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|
Source: Premium Times