President Muhammadu Buhari has approved the refund
of N522.74 billion to states who claimed that deductions from their federation
revenue to settle external debt obligations between 1995 and 2002 were in
excess of their debts.
The Minister of Finance, Mrs. Kemi Adeosun, said in
a statement, in Abuja, yesterday, that the amount would be paid in batches,
with the first tranche of N153.01 billion already being processed. She, however, did not disclose the benefiting
states
“The total amount approved by the President is
N522.74 Billion and is to be paid in batches. The first batch of N153.01
Billion is currently being processed for release to 14 State Governments. “The
release of these funds is intended to support the fiscal stimulus programme of
the President Muhammadu Buhari led administration to provide direct stimulus
through Government spending. It is particularly aimed at boosting demand at
consumer level and reversing the slowdown in economic activity”, the minister
said. According to Mrs. Adeosun, the claims of over-deductions were as a result
of First Line Charge deductions from the Federation Account Allocation
Committee (FAAC) allocations to repay debts owed to the Paris Club, London Club
and Multilateral debts. She said, “While Nigeria reached a final agreement for
debt relief with the Paris Club in October 2005, some States had already been
overcharged.”
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