President Muhammadu Buhari has ordered that each state government be paid the sum of N14.5 Billion, representing 25 percent of the over-deductions on Paris Club loans.
A statement by Festus Akanbi, Special Adviser to the minister of finance, Kemi Adeosun said that the Presidential ordered followed claims of over-deductions for external debt service arising between 1995 and 2002 as a result of First Line Charge deductions from the Federation Account Allocation Committee (FAAC) allocations. which the state governments have submitted to the Federal Government.
“These 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.
“On the request by State Governments for a refund of amounts owed by the Federal Government, Mr. President directed that claims be subject to verification by the Debt Management Office and a team was established and given the mandate to scrutinise claims and reconcile with available records. The brief for the team was also extended to include a review of interim payments made under previous administrations.”
The statement said that work has commenced to resolve each State Government’s claim and that the exercise is expected to take approximately 12 months. The statement assured that the exercise will be thorough, and will include a complete reconstruction of records dating back to the period in question.
“In the interim however, State Governors have continued to appeal for release of payment on the grounds of fairness because some States had already received refunds under previous administrations.
The Federal Government has reached a conditional agreement to pay 25% of the amounts claimed subject to a cap of N14.5 Billion to any given State. Balances due thereafter, will be revisited when fiscal conditions improve.
“Mr. President’s overriding concern is for the welfare of the Nigerian people considering the fact that many States are owing salaries and pension, causing considerable hardship. Therefore, to ensure compliance with the directive that a minimum of 50% of any amount disbursed is dedicated to this, funds will be credited to an auditable account from which payments to individual creditors would be made. Where possible, such payments would be made to BVN linked accounts and verified.
“Due to the fact that reconciliation is still on-going and the final outcome might show an under or overstatement of claims, an undertaken has been signed by State Governors, declaring that in the event the amount already paid exceeds the verified claim, the surplus would be deducted directly from the State’s monthly FAAC allocations.
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.” Buhari Orders Conditional Payment Of  N14.5 Billion To Each State Govt. Over Paris Club Loans Deductions
President Muhammadu Buhari has ordered that each state government be paid the sum of N14.5 Billion, representing 25 percent of the over-deductions on Paris Club loans.
A statement by Festus Akanbi, Special Adviser to the minister of finance, Kemi Adeosun said that the Presidential ordered followed claims of over-deductions for external debt service arising between 1995 and 2002 as a result of First Line Charge deductions from the Federation Account Allocation Committee (FAAC) allocations. which the state governments have submitted to the Federal Government.
“These 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.
“On the request by State Governments for a refund of amounts owed by the Federal Government, Mr. President directed that claims be subject to verification by the Debt Management Office and a team was established and given the mandate to scrutinise claims and reconcile with available records. The brief for the team was also extended to include a review of interim payments made under previous administrations.”
The statement said that work has commenced to resolve each State Government’s claim and that the exercise is expected to take approximately 12 months. The statement assured that the exercise will be thorough, and will include a complete reconstruction of records dating back to the period in question.
“In the interim however, State Governors have continued to appeal for release of payment on the grounds of fairness because some States had already received refunds under previous administrations.
The Federal Government has reached a conditional agreement to pay 25% of the amounts claimed subject to a cap of N14.5 Billion to any given State. Balances due thereafter, will be revisited when fiscal conditions improve.
“Mr. President’s overriding concern is for the welfare of the Nigerian people considering the fact that many States are owing salaries and pension, causing considerable hardship. Therefore, to ensure compliance with the directive that a minimum of 50% of any amount disbursed is dedicated to this, funds will be credited to an auditable account from which payments to individual creditors would be made. Where possible, such payments would be made to BVN linked accounts and verified.
“Due to the fact that reconciliation is still on-going and the final outcome might show an under or overstatement of claims, an undertaken has been signed by State Governors, declaring that in the event the amount already paid exceeds the verified claim, the surplus would be deducted directly from the State’s monthly FAAC allocations.
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.”  [myad]

Governor Ibrahim Gaidam of Yobe has disgraced a commissioner in his cabinet who fell asleep and was snoring heavily just as he was presenting the 2017 Budget to the State House of Assembly. The governor simply asked the offending commissioner to proceed home for more sleep.
Governor Gaidam thereafter warned that any public officer henceforth caught sleeping would be sacked.
“As from today, any commissioner or special adviser caught sleeping stands sacked and will immediately be replaced. We will borrow a leaf from the North Korea experience to make government affairs a serious business.”
Governor Gaidam, while reviewing the budget performance of the outgoing year, paused and directed the sleeping commissioner to go home.
“I am referring to the commissioner who is sleeping, you can go back home to sleep since you cannot endure the session.”
Although the governor did not mention the name of the sleeping commissioner, he pointed to the row of the commissioners to issue the directive.
The bewildered commissioners looked at each other in embarrassment and sat up to avoid dozing and being victims of the governor’s sledge hammer.
This was even the speaker of the House of Assembly, Alhaji Adamu Dala-Dogo, rose to the occasion to offer unsolicited advice, asking public officers to take beverages to keep them awake during public functions. [myad]