….promises to refund past deductions
Nigeria’s 36 state governors under the auspices of the Nigeria Governors Forum (NGF) on Tuesday disclosed that the Federal Government had agreed to stop further deductions from the State Governments’ federal accounts monthly allocations to offset Local Government Councils’ London/Paris Club debt obligations.
The outgoing Chairman of NGF, Governor Aminu Tambuwal, who made this disclosure during a media briefings on the outcomes of the Forum’s meeting also said that the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, promised to ensure the refund of previous deductions from the states’ accounts.
The governor spoke on the communiqué issued at the meeting which highlighted the key decisions taken, including the emergence of Kwara State Governor, Abdulrahman Abdulrazaq, as the new Chairman while Oyo State’s Governor, Seyi Makinde, was elected as the Vice Chairman of the NGF.
The communiqué reads: “Members were briefed by the Chairman of the forum that the Hon. Minister of Finance has granted the request of the forum to immediately stop further deductions from the accounts of States to meet Local Government Councils London Paris Club obligations and the monies so far deducted be paid back to the states.
“On the leadership of the forum, the Governor of Kwara State, Abdulrahman Abdulrazaq, emerged as the new Chairman of the Nigeria Governors’ Forum through a consensus, and the Governor of Oyo State Seyi Makinde is now the Vice-Chairman.
“Members expressed satisfaction with the success of the just concluded Induction for new and returning Governors that took place between 14 and 19 of May 2023. Members committed to sustained collaboration among the states through enhanced peer review, learning at the sub-national level and deepening the relationship with the Federal Government and other institutions”, it added.
It would be recalled that in the past year, the issue of Paris Club obligations and deductions have been a major cause of faceoff between the Federal Government and the sub-national governments.
The state governments had vehemently opposed plans by the Federal Government to deduct $418 million as Paris Club refunds from the accounts of states and local governments for payment to consultants and took the Federal Government to court over the fiscal matter.
