Ifeanyi Onuba , Abuja
Facts have emerged as to how the Federal Government allocated the first tranche of N 516 . 38 bn reimbursement made to the 36 states of the federation and the Federal Capital Territory from the Paris Club debt refund .
Based on the schedule of reimbursement which was released by the Federal Ministry of Finance on Friday in Abuja , five states got the highest amount of refund from the Federal Government.
The states are Rivers N34 . 92 bn, Delta N27 . 6 bn, Akwa Ibom N25 . 98 bn, Bayelsa N24 . 89 bn and Kano N 21 . 7 bn.
Analysis of the payment schedule showed that these five states got a total sum of N 135 . 09 bn representing 26 . 1 per cent of the entire amount refunded by the Federal Government to all the states .
This was followed by Lagos N16 . 74 bn, Katsina N16 . 4 bn, Kaduna N15 . 44 bn, Borno N 14 . 68 bn, Jigawa N 14 . 2 bn, Imo N14 . 01 bn, Niger N14 . 42 bn, Bauchi N13 . 75 bn, Sokoto N12 . 88 bn and Osun N12 . 62 bn.
Others are Cross River N12 . 15 bn, Anambra N12 . 24 bn, Edo N12 . 18 bn, Kebbi N11 . 95 bn, Kogi N 11 . 05 bn, Abia N11 . 43 bn, Ogun N11 . 47 bn, Plateau N11 . 28 bn.
Similarly, Yobe state got N10 . 82 bn, Zamfara N10 . 88 bn, Ebonyi N9 . 01 bn, Ekiti N 9 . 54 bn, Enugu N10 . 7 bn, Gombe N8 . 95 bn, Nasarawa N9 . 1 bn, Oyo N13 . 31 bn while Kwara got N10 . 24 bn.
The rest are Adamawa N10 . 25 bn, Benue N13 . 7 bn, Ondo N14 . 01 bn, Taraba N9 . 32 bn and Federal Capital Territory N1 . 36 bn.
The statement signed by the Director of Information in the finance ministry , Salisu Dambatta, said the payments were made upon the approval of President Muhammadu Buhari on November 21 2016 .
This is in partial settlement of long standing claims by state governments relating to over - deductions from their Federation Account Allocation Committee allocation for external debt service arising between 1995 and 2002 .
These 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 according to the statement had already been overcharged .
It reads in part , “ The funds were released to state government 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. The Federal Ministry of Finance is reviewing the impact of these releases on the level of arrears owed by state governments.
“ A detailed report is being compiled for presentation to the Acting President , Professor Yemi Osinbajo, as part of the process for approval for the release of any subsequent tranches . ”
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