Adeosun Bares Details Of Paris Club Refunds

Adeosun, in a statement by her Special Adviser on Media, Festus Akanbi, assured Nigerians that the Federal Government has “consistently complied with all extant rules and regulations in the disbursement of the refunds to State Governments.

THE WHISTLER recalls that Chairman of the Senate Committee on Federal Capital Territory, Dino Melaye, had earlier accused the Nigerian Government of secretly sharing the money to some states.

But Mrs. Adeosun cleared the air by saying that the “disbursement process was transparent and targeted at the attainment of specific economic objectives.”

The Minister stressed that the disbursement of the loan refunds was necessary due to “inability of some sub-national governments to meet salary and other obligations.”

She said that claims of over deductions had consistently been made to the Federal Government since 2005.

“The Debt Management Office (DMO) initially requested for a period of 22 months to complete the reconciliation and facilitate disbursement,” said Adeosun.

“However, President Muhammadu Buhari, considering the plight of salary earners and pensioners and the need to stimulate the economy, directed that the exercise be completed within 12 months.

“Mr. President gave an express Anticipatory Approval for the release of up to 50% of the claim of each state, pending final reconciliation. That reconciliation is undertaken by the DMO, Office of the Accountant General of the Federation (OAGF) and the relevant State Governments.

Adesoun further explained that the disbursements are spread out in batches, adding that the payments are only made to states that back up their claims with facts.

The Minister noted that available information indicate that some states had been paid either in full or in part under previous administrations, hence the need to carry out a more detailed review for such states.

“The release of the first tranche, representing up to 25% of claims, being N522.7Bn commenced in December 2016,” Adeousn said.

“Disbursement was subject to an agreement by State Governments that 50% of any amount received would be earmarked for the payment of salaries and pensions. In addition, each Governor gave an undertaking that excess payments would be recovered from the Federal Accounts Allocation (FAAC), if the final reconciliation found that the amount paid under the Anticipatory Approval exceeded that due.

“It is standard practice in the Ministry of Finance to undertake independent monitoring of compliance with the terms and conditions of funds released. This will be conducted in due course.

“To date, nine batches have been processed while some balances remain outstanding to the possible credit of a number of states. Given the foregoing, complete and final figures can only be released and published after each state and the Federal Government have reconciled and agreed on the sums due,” the minister said.

Adeosun further reiterated the current administration’s commitment to consistently make public, relevant details of disbursement of the loan refund.