The administration of President
Muhammadu Buhari is to reinburse state
governments for the claims of over-
deduction for external debt service arising
between 1995 and 2002 as a result of first
line charge deductions from the Federation
Account Allocation Committee (FAAC).
The state governments made the
submission to the federal government in
respect of the debt service deductions
having to do with the Paris Club and
multilateral debts.
buhari and state governors
Some states were said to have been
overcharged when Nigeria reached a
final agreement for debt relief with the
Paris Club in October 2005.
The president however directed that the
claims be subject to verification by the
Debt Management Office (DMO).
To this end, the ministry of Finance
announced that a team was established
and given the mandate to scrutinise and
reconcile the available records.
READ ALSO: How Buhari's government is
being derailed by minister - Group
The brief for the team was also extended
to include a review of interim payments
made under previous administrations.
Festus Akanbi, spokesperson to Kemi
Adeosun, the finance minister, said in a
statement that work has commenced to
resolve each state government’s claim
and that the exercise is expected to take
approximately 12 months.
"The exercise will be thorough, including
a complete reconstruction of records
dating back to the period in question,"
the statement said.
The statement said the federal
government had reached a conditional
agreement to pay 25 percent of the
amounts claimed subject to a cap of
N14.5 billion to any given state with the
balance to 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.
READ ALSO: World Bank boosts Nigeria's
agric sector with $600m
"Therefore, to ensure compliance with the
directive that a minimum of 50percent 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.
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"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.
READ ALSO: FG denies secretly sharing $4
billion club money
"It is particularly aimed at boosting
demand at consumer level and reversing
the slowdown in economic activity.
Muhammadu Buhari is to reinburse state
governments for the claims of over-
deduction for external debt service arising
between 1995 and 2002 as a result of first
line charge deductions from the Federation
Account Allocation Committee (FAAC).
The state governments made the
submission to the federal government in
respect of the debt service deductions
having to do with the Paris Club and
multilateral debts.
buhari and state governors
Some states were said to have been
overcharged when Nigeria reached a
final agreement for debt relief with the
Paris Club in October 2005.
The president however directed that the
claims be subject to verification by the
Debt Management Office (DMO).
To this end, the ministry of Finance
announced that a team was established
and given the mandate to scrutinise and
reconcile the available records.
READ ALSO: How Buhari's government is
being derailed by minister - Group
The brief for the team was also extended
to include a review of interim payments
made under previous administrations.
Festus Akanbi, spokesperson to Kemi
Adeosun, the finance minister, said in a
statement that work has commenced to
resolve each state government’s claim
and that the exercise is expected to take
approximately 12 months.
"The exercise will be thorough, including
a complete reconstruction of records
dating back to the period in question,"
the statement said.
The statement said the federal
government had reached a conditional
agreement to pay 25 percent of the
amounts claimed subject to a cap of
N14.5 billion to any given state with the
balance to 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.
READ ALSO: World Bank boosts Nigeria's
agric sector with $600m
"Therefore, to ensure compliance with the
directive that a minimum of 50percent 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.
Best Hollywood Cinema
They Should Never Be Remade See
the List of classics Movies
"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.
READ ALSO: FG denies secretly sharing $4
billion club money
"It is particularly aimed at boosting
demand at consumer level and reversing
the slowdown in economic activity.
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